The U.S. dollar index declined on Monday, pulling back 0.4% to 99.97 as markets paused following a recent greenback rally. The euro climbed to $1.1473 against the dollar, while the British pound rose to $1.3278, reflecting broad softness in the currency amid growing global uncertainty.
Investor attention this week is firmly fixed on a series of high-stakes monetary policy meetings, with the Federal Reserve, European Central Bank, Bank of Japan, and Bank of England all scheduled to announce their latest interest rate decisions. These central bank gatherings are unfolding against a volatile geopolitical backdrop shaped by the ongoing war in Iran, which has sent shockwaves through global energy markets.
Since fighting broke out in the Middle East, oil prices have surged past the $100-per-barrel threshold, with both Brent crude and West Texas Intermediate futures remaining elevated despite some intraday pullbacks. The conflict has severely disrupted oil flows through the Strait of Hormuz — a critical chokepoint through which approximately one-fifth of the world's oil supply passes — squeezing energy supplies across Europe and Asia.
The threat of renewed inflation stemming from rising energy costs has prompted speculation that the Fed and its global counterparts may reconsider rate hike strategies. Higher interest rates typically attract foreign capital, which could strengthen the dollar over time. Sentiment toward the greenback, previously bearish, shifted notably after the conflict began.
U.S. President Donald Trump has been pushing allies, including NATO member nations, to join a naval coalition aimed at reopening the Strait of Hormuz. He also warned China that a planned April summit with President Xi Jinping could be canceled unless Beijing leverages its influence to help unblock the waterway. Reports indicate that Chinese-bound tankers have been permitted passage while others faced attacks.
Analysts at ING noted that the lack of progress over the weekend suggests a prolonged conflict, adding further uncertainty to already jittery currency and commodity markets.


Gold Prices Slip as Iran Conflict and Fed Uncertainty Weigh on Markets
Asian Currencies Hold Steady Amid Iran Conflict and Fed Uncertainty
Fed Rate Cut Hopes Fade as Oil Prices Stoke Inflation Fears
China's Economy Surges in Early 2026: Industrial Output and Retail Sales Beat Forecasts
Asian Equities Plunge as Energy Supply Shock Triggers $15B Capital Flight
Iran-U.S. Military Escalation Shakes Persian Gulf and Global Oil Markets
Taiwan Central Bank Expected to Hold Interest Rates Steady Through 2027
U.S. Stock Futures Rise Amid Middle East Tensions and Fed Meeting Ahead
Cuba-U.S. Talks Begin Amid Deepening Energy Crisis
Russian Stock Market Closes Flat as Energy and Fertilizer Stocks Lead Gains
Trump Seeks Global Coalition to Reopen Strait of Hormuz Amid U.S.-Israel-Iran Conflict
Global Markets on Edge as Gulf Tensions Push Oil Prices Higher
U.S.-China Trade Talks Head to Paris as Officials Push for Balanced Economic Relations
Iran War and Oil Prices: What It Means for Airlines and Aerospace
Dollar Steadies Near 10-Month High as Central Banks Prepare for Critical Rate Decisions
Oil Prices Retreat as U.S.-Iran Conflict Disrupts Global Energy Markets
Iran War Sends Oil Prices Surging Past $100 as Hormuz Crisis Deepens 



