2026.04.2115:15:29UTC+00Dollar Moves Higher on Uncertainty About US-Iran Talks

The dollar index inched up to 98.3 on Tuesday, its highest level in about a week, as renewed tensions in the Middle East spurred a modest flight to safety. Investors remained uncertain over whether Iran would join the United States for a second round of talks ahead of Wednesday’s ceasefire deadline, while the Strait of Hormuz remains largely closed. At the same time, elevated oil prices are intensifying inflation concerns.

Markets are also focused on the Senate confirmation hearing for Kevin Warsh as the next Fed Chair. Warsh argued that the Federal Reserve must undergo substantial changes to avoid repeating past inflation errors, calling for a regime shift in the conduct of monetary policy, including the adoption of a new inflation framework. Beyond relying on interest rates and the Fed’s balance sheet to fight inflation, he stressed the importance of clearer and more effective communication from the central bank.