Dollar steady near 2-mth high amid fresh US-Iran tensions, Fed rate caution in Daily Currencies Ratings 11/06/2026 The U.S. dollar held largely steady on Thursday as investors assessed the implications of fresh U.S. strikes on Iran, and stronger-than-expected U.S. inflation data for the Federal Reserve’s policy outlook. The US Dollar Index hovered near the 100 level as of 03:01 ET (07:01 GMT), holding onto recent gains near a two-month high. US, Iran exchange fresh strikes; oil up Risk sentiment remained fragile after U.S. forces launched additional strikes on Iranian targets overnight, and President Donald Trump threatened that more strikes would follow if it did not agree to a deal. Iran said it had launched counterattacks on U.S. military targets at airbases in Kuwait and Bahrain. Tehran also announced a halt to vessel traffic through the Strait of Hormuz, one of the world’s most important energy shipping routes. The escalation drove oil prices higher and kept traders cautious across currency markets. US CPI accelerates in May, core measure subdued Data on Wednesday showed U.S. consumer prices accelerated in May, reinforcing expectations that the Federal Reserve could keep interest rates elevated for longer. Headline consumer prices rose at their fastest annual pace in more than three years, driven largely by higher energy costs linked to the worsening Middle East conflict. However, core CPI gained 0.2% over the month after rising 0.4% in April. “While US headline inflation was lifted by sharp gasoline and airline fare increases, other components were better behaved, leading to a softer-than-anticipated core inflation print,” ING analysts said in a note. “June’s inflation rate should be pulled lower by a reversal in gasoline, but inflation remains vulnerable to ongoing volatility in energy costs,” they added. Market participants expect at least one Fed rate hike before year-end. Investors now await U.S. producer price data and weekly jobless claims later in the d