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2026.03.1301:50:02UTC+00Dollar Heads for Second Weekly Gain

The dollar index held above 99.5 on Friday and was on track for a second straight weekly gain, supported by safe-haven demand as the Middle East conflict showed no signs of easing. Hardline rhetoric from leaders in Tehran and Washington indicated that the war involving Iran remains far from de-escalation after nearly two weeks of fighting. Oil prices also surged after Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz effectively closed while Tehran stepped up attacks on regional oil and transport infrastructure, amplifying inflation concerns. Mounting inflation risks prompted markets to push back expectations for the Federal Reserve’s next rate cut from July to September. Investors now look to January’s PCE price index—the Fed’s preferred inflation gauge—for fresh insight into price dynamics, though the data will not yet reflect the effects of the Iran conflict.

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