Dollar Index Erases Iran War Gains as Fed Hike Odds Fade

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The U.S. dollar index has essentially erased all of its gains since February 27, including the brief rebound that followed the outbreak of war with Iran. The reversal came as optimism grew that the U.S. and Iran might resume negotiations. Jane Foley of Rabobank said diverging central bank policies also pressured the dollar as rate expectations strengthened in Norway, Australia, and the UK.

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