The US dollar index has retraced its gains since the Iran war, with market expectations of a low probability of interest rate hikes by the Federal Reserve

According to Jinshi reports, the US Dollar Index DXY has basically retraced all gains since February 27. The dollar was already weak before the outbreak of the war in Iran, affected by policy burdens, including Trump's trade war and threats to the independence of the Federal Reserve. Although investors had previously unwound their short positions on the dollar after the outbreak of the war, the gains have now disappeared, partly due to optimistic market expectations that the US and Iran may resume negotiations. Jane Foley from Rabobank stated that the divergence in global central bank policies is also an important factor.