Dollar Treads Water Between Oil Spike and Uninspiring Fed Minutes

The dollar is struggling to find a clear direction as competing forces offset each other. Renewed US-Iran tensions have pushed oil prices higher, which typically provides a small mechanical bid for the greenback. However, the dollar is not yet trading as a full-blown geopolitical safe-haven play.

Meanwhile, the latest Federal Reserve minutes offered no fresh surprises or policy signals, leaving traders without a strong catalyst. The stale minutes failed to inject new momentum into the FX market.

As a result, the dollar index remains largely range-bound, with the oil-driven uptick countered by a lack of broader conviction. Market participants are watching for further developments in the Middle East and any shift in Fed rhetoric.