Dollar advances as US-Iran talks suffer setback
The US-Iran conflict has stalled peace talks, causing oil prices to surge and the dollar to strengthen. Investors are now focused on central bank meetings to gauge the war's impact on prices and interest rates.
The US-Iran conflict has escalated after US President Donald Trump cancelled a visit by his envoys to Islamabad, stating Iran could reach out to negotiate an end to the two-month war. This move pushed oil prices higher, with Brent crude futures up 2% to $107.49 a barrel and US West Texas Intermediate at $96.17 a barrel. The dollar index steadied at 98.623, having shed gains made on hopes of a peace deal. The war has sent oil prices surging, fuelled inflation, and cast a shadow over global growth. Investors are now focused on a series of central bank meetings, including the BOJ, Federal Reserve, European Central Bank, and Bank of England, to gauge the conflict's impact on prices and interest rates. The BOJ is expected to keep interest rates steady but signal its readiness to hike rates as soon as June.
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