Bloomberg Dollar Index rises more than 1%, biggest increase since May 2025.

The Bloomberg Dollar Spot Index rose more than 1% on Tuesday, marking its best performance since May 2025. As tensions in Iran continue to pose risks and drive oil prices up, traders are trimming their bets on a Federal Reserve interest rate cut. The index has gained nearly 1.8% this week, its biggest two-day surge since February 2023. G-10 currencies fell across the board on the day, with most European currencies dropping by more than 1%; the Japanese yen and the Canadian dollar saw the smallest declines among major currencies.