Dollar Dips on Soft CPI Despite US-Iran Tensions
The US Dollar Index fell 0.5% on Tuesday after the CPI report showed a sharper-than-expected slowdown to 3.5%, even as simmering US-Iran tensions were cited as a supporting factor for the greenback.
DXY
The US Dollar Index dropped approximately half a percent on Tuesday, driven by a softer-than-expected consumer price index report. The main CPI rate eased to 3.5% year-over-year, down from 4.2% in the prior month and below the 3.8% consensus forecast.
Despite the decline, analysts noted that geopolitical jitters surrounding US-Iran relations continued to provide some underlying support for the dollar. A peaceful resolution remains the base-case scenario, but the data-driven move outweighed safe-haven bids for now.
Source: FXStreet Forex News