---
title: "Dollar softens as Fed expectations and oil remain in focus: Currency recap"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286829261.md"
description: "The U.S. dollar weakened by 0.34% to $98.95 as investors reacted to geopolitical tensions in Iran and changing Federal Reserve policy expectations. The dollar index rose 1.19% over the past week, driven by rising U.S. Treasury yields and inflation concerns. Major currencies like the euro and pound showed mixed movements, with the pound rebounding 0.81% amid UK political uncertainty. Overall, the dollar remains up 0.79% year-to-date despite recent declines."
datetime: "2026-05-18T23:49:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286829261.md)
  - [en](https://longbridge.com/en/news/286829261.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286829261.md)
---

# Dollar softens as Fed expectations and oil remain in focus: Currency recap

The U.S. dollar edged lower, as investors assessed geopolitical developments around the Iran conflict and shifting expectations for Federal Reserve policy following a strong weekly advance. The dollar index (DXY), which measures the greenback against a basket of major currencies, was last down 0.34% at $98.95, though it remains up about 0.79% for t...

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