The US Dollar Index, which reflects the value of the US Dollar against a selection of six global currencies, is presently positioned around 98.20 during the Asian trading session on Monday. The DXY remains stable as market participants evaluate ongoing geopolitical tensions in the Middle East. The US President, Donald Trump, announced that the United States will start directing certain neutral vessels that are currently stranded in the Persian Gulf through the Strait of Hormuz, with operations commencing on Monday.

According to source, US Navy ships will remain in proximity if necessary to prevent the Iranian military from targeting commercial vessels in the Strait. The US Dollar Index remains stable at approximately 98.20 during the early Asian session on Monday. The US will assist vessels in navigating out of the Strait, according to Trump. Market participants prepare for the upcoming US employment report for April, scheduled for release on Friday.

An Iranian official cautioned that any US interference in Hormuz would be deemed a breach of the ceasefire, emphasizing that the Strait of Hormuz and the Persian Gulf should not be a venue for rhetoric. Market participants will pay close attention to the unfolding situation regarding the Middle East conflict and the ongoing blockade of the Strait of Hormuz. Indicators of rising tensions may bolster the US Dollar’s status as a safe-haven currency.

The upcoming US employment report for April, scheduled for release later on Friday, is anticipated to attract significant attention. The US economy anticipates an increase of 73K jobs in April, with the Unemployment Rate expected to hold steady at 4.3% during this timeframe. A report indicating a weaker-than-anticipated result may lead to a decline in the DXY in the short term.