Dollar steady as investors weigh Middle East jitters against softer inflation data

The U.S. dollar held steady on Tuesday as markets balanced signs of escalating ​tensions in the Middle East against lingering optimism from softer inflation data last week, Reuters reported.

The U.S. dollar index , which ‌measures the currency against a basket of six peers, was largely unchanged at 100.97 after hitting its highest since July 15 in the previous session, while the euro was marginally higher at $1.1421.

Lack of clarity on where the U.S.-Iran conflict is headed has left the dollar in limbo as markets lack conviction to place significant bets.

The U.S. military has struck Iran for ten straight nights, reigniting tensions and prompting investors to dial back hopes that the conflict would end soon.

Iran also targeted U.S. sites in Bahrain, Kuwait and Jordan. That kind ⁠of escalation typically drives flows into safe-havens such as the dollar.

At the same time, efforts to find a diplomatic solution remain active. A senior Iranian official told Reuters on Monday that Tehran had received a proposal from mediators for a 10-day ceasefire.

Dollar steady as investors weigh Middle East jitters against softer inflation data