Dollar Inches Higher as US-Iran Peace Doubts Cap Gains

The dollar edged up on Wednesday (May 27, 2026), with the DXY index adding 0.1% to 99.23, but conflicting signals over US-Iran negotiations limited the advance. The White House denied Iranian state media reports that a draft memorandum of understanding had been reached to end the three-month conflict. The MoU’s purported terms included Iran reopening the Strait of Hormuz to commercial shipping within a month in exchange for a US maritime blockade lift and military withdrawal. President Trump said talks were progressing “very well,” but warned “if it’s not a great agreement, we won’t take it,” while noting the US had already conducted “defensive” attacks. Oil prices fell on expectations Hormuz transit could normalize, with Iranian media reporting vessels passing under naval supervision. Markets next turn to Thursday’s core PCE price index, a key inflation gauge ahead of the Federal Reserve’s mid-June meeting.