22.06.202602:12:49UTC+00Dollar Holds Near 13-Month Peak

The dollar index hovered around 100.8 on Monday, holding near its strongest level since May 2025 as investors weighed developments in US-Iran peace talks and looked ahead to a key US inflation report. Media reports indicated that Washington and Tehran had agreed on a roadmap toward a final deal within 60 days, easing tensions after both sides recently traded fresh threats related to the conflict in Lebanon.

Market attention is now turning to this week’s release of the US PCE price index, the Federal Reserve’s preferred inflation gauge. Last week, the Fed left interest rates unchanged but adopted a more hawkish stance. Nine of the 19 policymakers now expect at least one additional rate hike before year-end, and futures markets are increasingly pricing in a possible move as early as September.

Elsewhere, traders continued to track the Japanese yen amid growing speculation about potential intervention, while also watching the British pound against a backdrop of ongoing political uncertainty in London.