Forex News: U.S. Dollar Ends Roughly Flat Amid Reescalation In

U.S. Dollar Ends Roughly Flat Amid Reescalation In The Middle East, US CPI Data Release

(RTTNews) - The U.S. Dollar value ended nearly unchanged as U.S.-Iran exchange of attacks raise doubts on an early peace deal. Meanwhile, the U.S. Consumer Purchase Index for May rose to 4.20% on an annual basis indicating a persistent war-driven inflation.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 100.04, up by 0.03 (or 0.03%) today.

On the data front, in the U.S., the Labor Department's data revealed that the core consumer prices (excluding food and energy) rose by 0.20% the month-on-month from the previous month in May 2026, slightly below market expectations of a 0.30% increase. Year over year, it climbed to 2.90% in May, matching market expectations.

The Consumer Purchase Index rose 0.50% month-over-month in May, matching forecasts. Year-over-year, it rose to 4.20%, highest in three years.

The CPI increased to 335.12 in May from 333.02 in April.

After rising 10.90% in March and 3.80% in April, energy prices increased 3.90% in May. In May, the gasoline and fuel prices rose 40.50% and 58.90% year on year respectively.

The Mortgage Bankers Association of America revealed that the Purchase Index in the U.S. increased to 176.90 on June 5 from 164.80 of the previous week.

While against the Euro, USD was trading at 1.154, up by 0.03%, against the GBP, it was trading at 1.337, up by 0.06%.

Against the USD, the Japanese Yen was trading at 160.539, down by 0.12% and the Swiss Franc was trading at 0.799, down by 0.22%.

Against the USD, the Canadian Dollar was trading at 1.394, up by 0.03%. As economists predicted, today the Bank of Canada left the target for its benchmark overnight rate steady at 2.25%. The Bank Rate remains at 2.50% and the Deposit Rate remains at 2.20%.

Against one unit of Australian Dollar, USD was trading at 0.699, up by 0.40%.

Yesterday, U.S. President Donald Trump reassured that a U.S.-Iran deal could happen in a couple of days and affirmed that the Strait of Hormuz will reopen soon after that.

Hours later, through Truth Social Trump messaged that Iranians have shot an U.S. AH-64 Apache helicopter patrolling across the Strait of Hormuz and vowed to give back Iran a fitting response.

Today, Trump criticized the Iranian regime for slowing the negotiations and asserted that Iran will pay the price for the delay.

U.S. Central Command confirmed launching self-defense strikes against Iran today as a proportional response to Iran's downing of U.S. helicopter.

U.S. launched airstrikes in southern Iran targeting air defense systems, radar sites, and command infrastructures.

In retaliation, Iran launched missile-and-drone attacks on U.S. Navy's Fifth Fleet headquarters in Bahrain, sites near Al Azraq airbase in Jordan, and U.S. bases in Kuwait.

Iran's Foreign Minister Seyed Abbas Araghchi warned that Iran would leave no attack or threat unanswered.

Associated Press reported that Trump is contemplating to hit Iran hard.

Axios reported that Trump held a meeting today afternoon in the White House Situation Room to plan on potential strikes against Iran.

Reportedly, Trump is considering an operation big in scale but short in duration.

Qatar is mediating with Iran to calm the tensions and re-initiate peace talks.

Due to the prevailing uncertainty, investors have wound up their expectations on a U.S.-Iran deal and the chances of an early reopening of the Strait of Hormuz.

Oil prices moved higher, gold prices tumbled.

The U.S. Federal Reserve is set to announce its interest rate policy at the end of its June 16-17 meeting under its new Chair Kevin Warsh.

Economists are of the view that an inflation rate above 4.00% makes it difficult for Warsh to institute any rate cut and expect a high-interest-rate regime in the short-term.

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