{"id":30521,"date":"2026-03-12T08:59:03","date_gmt":"2026-03-12T08:59:03","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/30521\/"},"modified":"2026-03-12T08:59:03","modified_gmt":"2026-03-12T08:59:03","slug":"dollar-holds-near-yearly-highs","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/analysis\/30521\/","title":{"rendered":"Dollar Holds Near Yearly Highs"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/03\/USD7-1024x573.webp\" alt=\"\" class=\"wp-image-44224\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>US dollar index (USDX)<\/strong> trades around <strong>99.136<\/strong>, up <strong>+0.144 (+0.15%)<\/strong>, hovering near its strongest levels this year.<\/li>\n\n\n\n<li>Brent crude surged above <strong>$100 per barrel<\/strong>, intensifying inflation concerns and lifting expectations for tighter central bank policy.<\/li>\n\n\n\n<li>Markets are pushing back rate-cut expectations as oil-driven inflation risks grow, with traders increasingly pricing delayed easing from major central banks.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>The US dollar extended its gains as oil prices surged, pushing the currency toward its strongest levels of the year. Traders have been moving back into the dollar as the global energy shock raises concerns about inflation and forces markets to rethink how quickly central banks can ease policy.<\/p>\n\n\n\n<p>Rising oil prices increase energy costs across economies, which feeds into consumer prices and complicates the inflation outlook. This has strengthened the dollar as traders reduce bets on interest rate cuts and look for safety in the world\u2019s reserve currency.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The dollar is the best haven bet as market volatility picks up during the Mideast conflict, according to Nathan Thooft of Manulife Investment Management, who says he\u2019s shifted more of his investments to the US since hostilities erupted <a href=\"https:\/\/t.co\/jG8GYsdd2X\">https:\/\/t.co\/jG8GYsdd2X<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2031773174539370812?ref_src=twsrc%5Etfw\">March 11, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The move has been broad across the currency market. The euro, yen, sterling and commodity-linked currencies all weakened against the dollar as energy volatility weighed on global risk sentiment.<\/p>\n\n\n\n<p>If oil prices remain elevated, the dollar may continue to find support as markets adjust to the possibility that central banks keep policy tighter for longer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Energy Dependence Shapes Currency Moves<\/h2>\n\n\n\n<p>Currency moves have largely reflected each economy\u2019s dependence on imported energy. Countries that rely heavily on foreign oil and gas face worsening trade balances when energy prices surge.<\/p>\n\n\n\n<p>This dynamic has pressured European and Asian currencies. Europe in particular faces greater exposure to energy shocks because of its dependence on imported oil and gas, which has weighed on the euro despite rising expectations that the European Central Bank may tighten policy.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">A sharp swing in European money markets from bets on central bank interest-rate cuts to hikes has caught traders off guard, forcing some to exit options at hefty losses <a href=\"https:\/\/t.co\/Ac4h2iAIm1\">https:\/\/t.co\/Ac4h2iAIm1<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2031769363590570097?ref_src=twsrc%5Etfw\">March 11, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The Japanese yen also weakened toward the <strong>159 per dollar<\/strong> level, approaching its weakest levels in nearly a year. Japan imports the vast majority of its energy needs, meaning higher oil prices quickly translate into economic pressure.<\/p>\n\n\n\n<p><a href=\"https:\/\/t.co\/1Xi4AcLOZX\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">Commodity currencies<\/a> have also felt the strain. The Australian and New Zealand dollars both slipped as traders reassessed global growth risks and rising inflation.<\/p>\n\n\n\n<p>If energy prices remain volatile and supply disruptions persist, currencies tied to energy imports may continue to face pressure relative to the dollar.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rate Expectations Shift Across Central Banks<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/t.co\/HKISI8QJmz\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">surge in oil prices<\/a> has begun to ripple through interest-rate markets. Traders are increasingly questioning whether central banks can cut rates as quickly as previously expected if inflation pressures rise again.<\/p>\n\n\n\n<p>Swaps markets now show expectations that some central banks could tighten sooner or delay easing cycles. The European Central Bank is increasingly expected to move earlier than anticipated, while the Reserve Bank of Australia may face renewed pressure to raise rates.<\/p>\n\n\n\n<p>In the United States, traders have also scaled back expectations for rate cuts. Fed funds futures show markets pushing potential easing further into the year as inflation risks from energy prices rise.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">A key measure of US inflation was tame at the start of the year. But another metric is shaping up to paint a very different picture <a href=\"https:\/\/t.co\/xoKdT0a7Vt\">https:\/\/t.co\/xoKdT0a7Vt<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2031800108912697663?ref_src=twsrc%5Etfw\">March 11, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>If inflation expectations continue climbing alongside energy prices, central banks may adopt a more cautious policy stance, which would likely support the dollar and maintain volatility in global currency markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">USDX Technical Outlook<\/h2>\n\n\n\n<p>The <strong>US Dollar Index (USDX)<\/strong> is trading near <strong>99.14<\/strong>, up around <strong>0.15%<\/strong>, as the dollar continues to hold its recent gains following the rebound from the <strong>95.34<\/strong> low earlier this year.<\/p>\n\n\n\n<p>The index has been trending gradually higher over the past few weeks, reflecting renewed demand for the dollar amid heightened global uncertainty and shifting macro expectations.<\/p>\n\n\n\n<p>From a technical standpoint, the index is currently trading above its key short-term moving averages. The <strong>5-day moving average (98.83)<\/strong> and <strong>10-day (98.70)<\/strong> are both trending upward and sitting just below the current price level, while the <strong>20-day (98.07)<\/strong> and <strong>30-day (97.76)<\/strong> remain further beneath the market.<\/p>\n\n\n\n<p>This alignment indicates strengthening bullish momentum in the near term as the dollar attempts to extend its recovery.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/03\/image-16-1024x474.jpg\" alt=\"\" class=\"wp-image-44223\"\/><\/figure>\n\n\n\n<p>Immediate resistance is located near <strong>99.30\u201399.50<\/strong>, where recent rallies have stalled. A sustained break above this region could bring the index back toward the <strong>100.00<\/strong> psychological level, followed by the <strong>100.32<\/strong> area, which previously capped the broader advance.<\/p>\n\n\n\n<p>On the downside, initial support is seen around <strong>98.70\u201398.80<\/strong>, with stronger structural support near <strong>98.00<\/strong>, where the 20-day moving average is currently positioned.<\/p>\n\n\n\n<p>Overall, the short-term bias for the dollar remains <strong>moderately bullish<\/strong>, with the index consolidating near recent highs. A move above <strong>99.50<\/strong> would likely strengthen upward momentum toward the <strong>100<\/strong> handle, while failure to hold above the <strong>98.70\u201398.80<\/strong> support zone could trigger a deeper consolidation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Traders Should Watch Next<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Oil price volatility and any renewed disruptions to shipping through the <strong>Strait of Hormuz<\/strong>.<\/li>\n\n\n\n<li>Central bank messaging as inflation expectations rise alongside energy costs.<\/li>\n\n\n\n<li>Currency reactions in energy-importing economies, particularly the euro and yen.<\/li>\n\n\n\n<li>Whether USDX retests resistance near <strong>100.321<\/strong> as safe-haven demand strengthens.<\/li>\n<\/ul>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/indices\" target=\"_blank\" rel=\"noopener\" title=\"\">Indices<\/a> on <a href=\"https:\/\/www.vtmarkets.com\/trade-now\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets<\/a> today.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Why is the US Dollar Strengthening Right Now?<\/strong> <br>The US dollar is gaining support as oil prices surge and raise inflation concerns. Higher energy costs can delay interest rate cuts, which tends to strengthen the dollar because traders seek higher-yielding and safer assets.<\/li>\n\n\n\n<li><strong>What is the US Dollar Index (USDX)?<\/strong> <br>The <strong>US Dollar Index (USDX)<\/strong> measures the strength of the dollar against a basket of six major currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.<\/li>\n\n\n\n<li><strong>Why Do Rising Oil Prices Support the Dollar?<\/strong> <br>Higher oil prices increase inflation risks and push central banks to maintain tighter monetary policy. Since the United States is a <strong>net energy exporter<\/strong>, rising oil prices often benefit the dollar relative to currencies of energy-importing economies.<\/li>\n\n\n\n<li><strong>How Does the Strait of Hormuz Affect Currency Markets?<\/strong> <br>The Strait of Hormuz is one of the world\u2019s most important energy shipping routes. Disruptions there can push oil prices higher, increase inflation expectations and shift global capital flows toward safe-haven currencies like the dollar.<\/li>\n\n\n\n<li><strong>Why Are Interest Rate Expectations Changing?<\/strong> <br>Surging energy prices increase inflation risks, making central banks more cautious about cutting interest rates. Markets are now pushing potential easing further into the year as policymakers monitor inflation pressures.<\/li>\n<\/ol>\n\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>USDX trades near 99.136 as surging oil prices raise inflation risks and push markets to reconsider global rate-cut expectations. | VT Markets<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-30521","post","type-post","status-publish","format-standard","hentry","category-analysis"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30521","targetHints":{"allow":["GET","POST","PUT","PATCH","DELETE"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=30521"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30521\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=30521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=30521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=30521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}