US Dollar Index Rallies Back Above 100 on Iran Deal and Hawkish Fed

The US Dollar Index (DXY) staged a sharp recovery, climbing back above the psychologically important 100 level. This rebound is attributed to two key factors: the signing of a Memorandum of Understanding (MOU) between the United States and Iran, and a hawkish stance from the Federal Reserve.

Kevin Warsh's first Fed meeting as chair signaled a more aggressive tightening bias, further supporting the dollar. The MOU with Iran eased geopolitical tensions, while the Fed's outlook reinforced expectations of higher interest rates, both fueling demand for the greenback.