Dollar Index Holds at 99.026 as Trump Pauses Iran Strike and Brent Drops 2.4%

5 articles · Updated · CNBC · May 19

The dollar steadied in early Asian trade, with the U.S. dollar index at 99.026 after a 0.3% slide on Monday ended a five-day winning streak.
Trump's decision to pause a planned attack on Iran for negotiations eased fears of a wider Middle East war, helping calm bond markets after a two-day selloff.
U.S. 10-year Treasury yields fell 3 basis points to 4.591%, while Brent crude dropped 2.4% to $109.43 as worries about a lasting inflation shock receded.
Fed funds futures still imply a 36.2% chance of a 25-basis-point hike on December 9, up sharply from 0.5% a month ago as investors reassess war-driven inflation risks.
Against that backdrop, the yen held near 158.895 per dollar despite Japan's stronger-than-expected 2.1% annualized first-quarter growth and continued intervention warnings from Tokyo.

With markets calmed by a temporary truce, what hidden demands could reignite the US-Iran conflict?

Beyond oil, how will global food and tech supply chains recover from the Hormuz shutdown?