The US Dollar Index trades steadily near 98.20 during Monday’s early Asian session. Donald Trump stated that the United States will assist vessels in exiting the Strait, while traders turn their focus to the upcoming US April employment report scheduled for release on Friday.
The US Dollar Index (DXY), which tracks the US Dollar against a basket of six major currencies, is hovering around 98.20 during Monday’s Asian session. It remains relatively stable as market participants evaluate ongoing geopolitical tensions in the Middle East.
US President Donald Trump announced that starting Monday, the US will assist neutral vessels stranded in the Persian Gulf by escorting them through the Strait of Hormuz. According to Bloomberg, US Navy ships will remain on standby to deter potential Iranian attacks on commercial shipping in the area.
Meanwhile, an Iranian official cautioned that any US involvement in the Strait would be viewed as a breach of the ceasefire, emphasizing that the Persian Gulf is not a place for political posturing. Traders are keeping a close watch on developments in the region, particularly any continuation of the Hormuz blockade. Escalating tensions could support the US Dollar due to its safe-haven appeal.
Attention will also turn to the upcoming US April employment report, scheduled for release on Friday. Job growth is forecast at 73,000, while the unemployment rate is expected to hold steady at 4.3%. A weaker-than-anticipated report could weigh on the DXY in the short term.
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