DXY Holds at $98, Diplomacy Optimism Pressures Safe-Haven Demand
The US Dollar Index (DXY) moved flat and held around 98.20 in Asian trading on Wednesday (April 15), halting a seven-session downward trend. The limited movement reflects a balance between short-term technical strength and reduced demand for the dollar as a safe-haven asset.
Risk sentiment improved as markets placed hope in a diplomatic path to a resolution to the Middle East conflict. The US and Iran are reportedly preparing for a second round of peace talks before the two-week ceasefire expires, although tensions in the Strait of Hormuz continue to maintain global energy risks.
From Washington, President Donald Trump signaled that negotiations could resume this week, while rejecting Iran's proposed 20-year nuclear enrichment freeze. Vice President JD Vance also mentioned "significant progress" in the initial round of talks in Pakistan, with further discussions potentially taking place within days.
On the data front, weaker-than-expected US producer inflation pressures also limited the dollar's room for strength, reducing the urgency for the Fed to maintain its tightening bias. The PPI rose 0.5% month-on-month, below the consensus of 1.2%, while the core PPI was only 0.1% month-on-month versus expectations of 0.6%.
Speculatively, the PPI was recorded at 4% in March, lower than the projected 4.6%, although up from 3.4% in February, while the core PPI remained at 3.8%. Going forward, the DXY's direction will be sensitive to concrete follow-up action on the US-Iran talks, developments in the Strait of Hormuz risks affecting energy prices, and changes in market expectations regarding the Fed's interest rate policy path. (asd)*
Source: Newsmaker.id
