The dollar index rose on Tuesday, reversing previous losses as renewed doubts over the durability of the US-Iran ceasefire revived demand for the currency. Risk appetite deteriorated after President Donald Trump rejected Tehran's latest proposal and warned that the ceasefire was "on life support," raising fears that tensions could intensify again.
"We doubt that US tariffs will significantly affect inflation in the rest of the world, but if anything, the effect could be mildly disinflationary," said Simon MacAdam and Ariane Curtis.