Dollar Holds Steady Amid Middle East Tensions and Inflation Concerns

US Dollar Stable as Investors Monitor Middle East Conflict

Singapore:  The US dollar held steady today amid a lack of progress in talks aimed at ending the conflict in the Middle East, while rising oil prices increased investor concerns that interest rates may remain elevated to contain inflation.

Brent crude futures rose by 0.3 percent to $104.55 per barrel, while US West Texas Intermediate crude gained 0.13 percent to reach $98.17 per barrel.

Currency markets recorded limited movements at the start of Asian trading, with investor attention turning to US President Donald Trump’s upcoming visit to China later this week. US Treasury Secretary Scott Bessent is also visiting Asia for meetings in Japan and South Korea.

The euro remained stable at $1.1775, while sterling traded unchanged at $1.3602.

The dollar index, which measures the US currency against six major currencies, stood at 97.98.

The dollar had initially benefited from safe-haven demand following the outbreak of the conflict, but later gave up most of those gains amid uncertainty surrounding prospects for a ceasefire agreement.

Market focus later today will shift to the US inflation report, which is expected to show that consumer prices rose by 0.6 percent last month following a 0.9 percent increase in March.

The Japanese yen remained steady at 157.30 per dollar. Japan’s Finance Minister Satsuki Katayama stated after a meeting with her US counterpart that both countries reaffirmed close cooperation regarding currency market movements.

The Australian dollar declined by 0.14 percent to $0.724 ahead of the Australian budget announcement, while the New Zealand dollar fell by 0.07 percent to $0.5959.

Bitcoin also slipped by 0.3 percent to $81,551 in early trading.