Precise Investors Editorial Team
The dollar index and dollar index futures increased between 0.1% and 0.2% on Thursday, coming back in sight of a near two-month high
The dollar firmed in Asian trade on Thursday after the U.S. attacked Iran for the second time this week, ramping up concerns over a prolonged war and its inflationary effects.
Markets focus was also on a U.S. inflation reading due later in the day for more cues on interest rates.
Broader currencies largely pulled back after the U.S. attacks, as comments from top officials also diminished hopes for a peace deal with Iran. Oil prices surged after Thursday’s attacks, further spooking markets.
The dollar index and dollar index futures increased between 0.1% and 0.2% on Thursday, coming back in sight of a near two-month high.
Gains in the dollar came after reports showed the U.S. had attacked Iran – a second such incident this week.
The dollar was also buoyed by continued bets that energy-driven inflation will elicit a more hawkish stance from the country’s central bank and some other central banks.
PCE price index data for April is due later on Thursday. Core PCE data is the bank’s preferred inflation gauge, and will be closely watched for more signs of inflation stemming from the Iran war.
Other inflation prints for April, released earlier this month, showed a sharp rise in price pressures.
Asian currencies broadly pulled back on Thursday, with the yen’s USD/JPY pair rising slightly and coming back in sight of the 160 yen level.
The level had spurred currency market intervention by the Bank of Japan in early-May, with Japanese authorities warning they will step in to support the yen again.
The yuan’s USD/CNY pair added 0.1%, as did the Taiwan dollar’s USD/TWD.
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