US Dollar Holds Near 99 as Iran Risk Keeps a Bid for Safe Havens
The US Dollar traded broadly steady on Wednesday, supported by a cautious market tone as renewed Iran-related tensions reduced confidence in a quick breakthrough. The Dollar Index hovered around 99.08, while USD/JPY eased toward 159.45, drifting back toward the 160 area that traders often view as sensitive given Japan’s intervention risk.
On the data front, US consumer confidence softened in May to 93.1, with the “present situation” component slipping even as expectations improved. The release reinforced the view that cost-of-living pressures and energy-linked inflation remain a key constraint on household sentiment, which could matter for the consumption outlook if the trend persists.
In Asia-Pacific, the greenback was relatively firmer against some commodity-linked currencies after Australia’s inflation cooled to 4.2% YoY, easing the case for additional near-term tightening and weighing on the Australian dollar. The main transmission channel remains policy expectations: softer inflation tends to reduce rate pressure, narrowing yield support for the currency.
Markets will continue to watch US–Iran headlines (particularly any timeline for Hormuz), USD/JPY’s approach toward 160 amid intervention sensitivity, and this week’s US data slate—including activity and inflation indicators—that could reshape the rate path and, in turn, the dollar’s direction.
Source : Newsmaker.id
