WASHINGTON (dpa-AFX) - The U.S. Dollar value edged lower as investors assessed the possibilities of inflation and the consequential weakening of demand growth after fresh U.S.-Iran attacks that began on Sunday. In addition, focus of traders shifted to the upcoming non-farm payrolls report scheduled for September 4, Friday.
Today, the U.S. Dollar Index DXY, which measures the Greenback against a basket of other major currencies, was last seen trading at 99.42, down by 0.28 (or 0.28%).
The general business activity index for Texas manufacturing as reported by the Federal Reserve Bank of Dallas, jumped to 11.60 in August the highest level since January, up from 1.30 in July.
While against the Euro, the USD was trading at 1.161, down by 0.32%, against the GBP, the USD was trading at 1.355, down by 0.12%.
Against the USD, the Japanese Yen was trading at 159.751, up by 0.20%, the Swiss Franc was trading at 0.808, up by 0.11%; and the Canadian Dollar was trading at 1.385, up by 0.33%.
Against one unit of Australian Dollar, the USD was trading at 0.717, down by 0.10%.
The U.S.-Iran war took an unexpected turn yesterday after the U.S. launched attacks on Larak Island in the Strait of Hormuz to block Iran's attempt at deploying sea mines in the seaway.
Of note, both nations had paused attacks on each other's targets for more than a month's time.
Iran responded by launching strikes at the King Hussein air bases and Al-Azraq U.S. air bases in Jordan which were intercepted and destroyed by the U.S.
Iran also announced targeting Al Minhad Air Base in the United Arab Emirates though the U.A.E. denied it.
Through Truth Social, U.S. President Donald Trump posted two AI-generated videos depicting bombing of Iran's vital oil hub, Kharg Island. Tagging the video, Trump posted a message that read that the island was blown to smithereens.
With no reports of Kharg Island being struck emerging, experts are of the view that Trump may be resorting to intimidation.
U.S. Vice President JD Vance stated that Trump wanted to send a message to the Iranians.
Iran's Deputy Foreign Minister Kazem Gharibabadi stressed again that Iran holds full control over the Strait of Hormuz and added that only ships coordinating with Iranian authorities passes through it.
Amid several challenges facing the U.S. economy, last Friday, U.S. Federal Reserve Chair Kevin Warsh delivered his keynote address at the Jackson Hole Symposium in Wyoming.
In his speech, Warsh did not mention about the Treasury's recent moves to accelerate buybacks of long-term bonds but stressed that inflation has not meaningfully improved.
Warsh remarked that until the Fed receives unfiltered data to suggest that inflation is under the Fed's goal of 2%, the Fed may have work to do, suggesting that a rate hike may be imminent.
According to the CME Group's FedWatch Tool, currently investors are betting on a 65.90% chance of a 25-basis-point interest rate-hike at the upcoming meeting of the U.S. Federal Reserve on September 15-16 while the odds on rates being held at the current level stand at 34.10%.
Ahead of the upcoming September meeting of the Federal Open Market Committee, investors are anticipating the August non-farm payrolls report to be released this week which would provide critical insights on the U.S. labor market scenario. Of note, this would be the final monthly jobs report ahead of the FOMC meeting.
Additional clues may be derived from July JOLTS job openings, the ADP employment report, and ISM indices.
If employment numbers show marked improvement, market participants may dial back rate-cut bets. If the numbers suggest a deterioration, investors may shift their expectations toward policy-easing.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
