US Dollar Slips to Six-Week Lows as Geopolitics and Fed Shape Outlook

The US Dollar Index drifted lower through the week, briefly hitting its weakest level in six weeks. The move came despite a broad risk-off tone fueled by unabated geopolitical tensions in the Middle East, suggesting that typical safe-haven flows were outweighed by other factors.

Investors turned their attention to upcoming inflation figures and Federal Reserve commentary, which are expected to set the near-term direction for the greenback. The confluence of price data, geopolitics, and central bank signals keeps the dollar outlook fluid heading into next week.