Dollar Supported by Weak Stocks and Iran War
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AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Dollar Supported by Weak Stocks and Iran War March 20, 2026 — 02:16 pm EDT Written by Rich Asplund for Barchart-> The dollar index (DXY00) today is up by +0.50%. The dollar is climbing today as weakness in stocks has boosted some liquidity demand for the dollar. Also, the ongoing war in Iran has boosted demand for the dollar as a safe haven. In addition, higher T-note yields today are strengthening the dollar’s interest rate differentials. The dollar also has carryover support from Wednesday, when Fed Chair Powell said there will be no Fed rate cut unless there is progress on inflation. Swaps markets are discounting the odds at 12% for a +25 bp rate hike at the April 28-29 FOMC meeting. Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily. The dollar continues to be undercut by a poor outlook for interest rate differentials, with the FOMC expected to cut interest rates by at least -25 bp in 2026, while the BOJ and ECB are expected to raise rates by at least +25 bp in 2026. EUR/USD (^EURUSD) today is down by -0.45%. The euro is under pressure today from a stronger dollar. Also, today’s news that showed German Feb producer prices posted their biggest decline in 1.75 years is dovish for ECB policy and negative for the euro. The euro has some support on today’s hawkish comments from ECB Governing Council member Nagel, who said the ECB may need to raise interest rates as soon as next month if price pressures continue to build from the war in Iran.German Feb PPI fell -3.3% y/y, weaker than expectations of -2.7% y/y and the biggest decline in 1.75 years.ECB Governing Council member and Bundesbank President Joachim Nagel said the ECB may need to consider raising interest rates as soon as next month if price pressures build further due to the Iran war.Swaps are discounting a 78% chance of a +25 bp rate hike by the ECB at the April 30 policy meeting.USD/JPY (^USDJPY) today is up by +0.87%. The yen is sliding today amid strength in the dollar and higher T-note yields. The yen added to its losses today after crude oil prices rose, a bearish factor for Japan’s economy, which imports 90% of its energy needs. Trading volume and activity in the yen could be below normal today, as markets in Japan are closed for the Vernal Equinox Day holiday. The markets are discounting a +60% chance of a 25 bp BOJ rate hike at the next meeting on April 28.April COMEX gold (GCJ26) today is down -26.60 (-0.58%), and May COMEX silver (SIK26) is down -2.040 (-2.95%).Gold and silver prices gave up early gains today and turned lower amid a stronger dollar. Also, higher global bond yields today are weighing on precious metals prices. In addition, soaring energy costs from the war in Iran have turned many central banks hawkish this week, with threats to tighten monetary policy, a bearish factor for precious metals. Losses in precious metals accelerated today after ECB Governing Council member and Bundesbank President Joachim Nagel said the ECB may have to raise interest rates as soon as next month if price pressures build further from the war in Iran. Precious metals continue to see strong safe-haven demand as the war against Iran entered its twenty-first day today, with no end in sight. Also, uncertainty over US tariffs, US political turmoil, large US deficits, and government policy uncertainty are boosting demand for precious metals as a store of value.Recent fund liquidation of precious metals is bearish for prices, as long holdings in gold ETFs fell to a 2.5-month low on Thursday after climbing to a 3.5-year high on February 27. Also, long holdings in silver ETFs fell to a 6-month low on Thursday after rising to a 3.5-year high on December 23.Strong central bank demand for gold is supportive of gold prices, following the recent news that bullion held in China’s PBOC reserves rose by +40,000 ounces to 74.19 million troy ounces in January, the fifteenth consecutive month the PBOC has boosted its gold reserves. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart As Strait of Hormuz Closure Raises Energy Prices, Make This 1 Trade Now Will the White House Fume as the Fed is Led by F.O.I.L? 1 Trade to Make Now as the Australian Dollar Hits a New Contract High As the Dollar and Energy Prices Spike on Continued Iran War, Make This 1 Trade Now The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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