{"id":128211,"date":"2026-06-09T16:32:56","date_gmt":"2026-06-09T12:32:56","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=128211"},"modified":"2026-06-09T16:32:59","modified_gmt":"2026-06-09T12:32:59","slug":"dollar-eases-from-2-month-high-as-ceasefire-holds-and-cpi-looms-indonesia-shocks-with-emergency-rate-hike","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/dollar-eases-from-2-month-high-as-ceasefire-holds-and-cpi-looms-indonesia-shocks-with-emergency-rate-hike\/06\/09\/market-updates\/","title":{"rendered":"Dollar Eases From 2-Month High as Ceasefire Holds and CPI Looms: Indonesia Shocks With Emergency Rate Hike"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dollar pulls back:<\/strong> The DXY dipped 0.1% to 99.93, just below Monday&#8217;s two-month peak of 100.21.<\/li>\n\n\n\n<li><strong>Israel-Iran halt attacks:<\/strong> Both sides paused strikes following Trump&#8217;s diplomatic intervention.<\/li>\n\n\n\n<li><strong>Trump&#8217;s &#8220;total victory&#8221; declaration:<\/strong> The president said the U.S. was close to declaring victory and oil prices would fall sharply.<\/li>\n\n\n\n<li><strong>Ceasefire fragility persists:<\/strong> Investors remain cautious about durability; Hormuz uncertainty lingers.<\/li>\n\n\n\n<li><strong>Treasury yields stay elevated:<\/strong> Last week&#8217;s strong jobs report keeps rates on a hawkish trajectory.<\/li>\n\n\n\n<li><strong>70% December Fed hike probability:<\/strong> Markets have significantly repriced rate expectations.<\/li>\n\n\n\n<li><strong>CPI Wednesday, PPI Thursday:<\/strong> Key inflation readings will test whether the dollar&#8217;s rally has more room to run.<\/li>\n\n\n\n<li><strong>ECB rate hike Thursday:<\/strong> A 25 basis point increase is priced in; markets will watch closely for guidance on the policy outlook.<\/li>\n\n\n\n<li><strong>Euro edges higher:<\/strong> EUR\/USD rose for a second consecutive session ahead of the ECB decision.<\/li>\n\n\n\n<li><strong>Bank Indonesia shocks:<\/strong> An unexpected 25 basis point rate hike took the policy rate to 5.50% in an off-cycle move to defend the rupiah.<\/li>\n\n\n\n<li><strong>Rupiah soars:<\/strong> IDR\/USD jumped nearly 1% \u2014 its strongest daily gain in over a year.<\/li>\n\n\n\n<li><strong>Yen above 160:<\/strong> USD\/JPY held above the intervention trigger level, keeping Tokyo on alert.<\/li>\n<\/ul>\n\n\n\n<p>The U.S. dollar eased from a two-month high on Tuesday as investors weighed the durability of a fragile ceasefire between Israel and Iran and looked ahead to key U.S. inflation data that could offer fresh clues on the Federal Reserve&#8217;s interest-rate trajectory.<\/p>\n\n\n\n<p>The U.S. Dollar Index traded 0.1% lower at 99.93 by 04:27 ET, just below the two-month high of 100.21 touched in the previous session.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Israel and Iran Halt Attacks After Trump Appeal<\/h2>\n\n\n\n<p>Risk sentiment improved after Israel and Iran halted attacks following diplomatic efforts led by U.S. President Donald Trump.<\/p>\n\n\n\n<p>Trump said on Monday evening that the United States was close to declaring a &#8220;total victory&#8221; in the Iran war, and that oil prices were likely to fall sharply.<\/p>\n\n\n\n<p>Still, investors remained cautious about the durability of the ceasefire, with geopolitical tensions lingering and uncertainty surrounding the Strait of Hormuz \u2014 a critical artery for global energy shipments.<\/p>\n\n\n\n<p>Treasury yields stayed elevated following last week&#8217;s robust U.S. payrolls report, which reinforced expectations that the Federal Reserve could keep monetary policy restrictive for longer.<\/p>\n\n\n\n<p>Markets are now pricing roughly a 70% chance of a Fed rate hike by December.<\/p>\n\n\n\n<p>Attention now turns to U.S. consumer price index data due on Wednesday and producer price figures on Thursday. Stronger-than-expected inflation readings could bolster the case for prolonged policy restraint and lend renewed support to the dollar.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">ECB in Focus; Indonesia Hikes Rates Unexpectedly<\/h2>\n\n\n\n<p>The euro edged higher for a second consecutive session as investors turned their attention to Thursday&#8217;s European Central Bank policy meeting, where markets expect a 25-basis-point interest-rate increase \u2014 reflecting inflationary pressures stemming from the recent Middle East conflict.<\/p>\n\n\n\n<p>While the rate decision itself is priced in, investors will be closely watching the ECB&#8217;s guidance for clues on the policy outlook and how policymakers assess the inflationary implications of higher energy costs.<\/p>\n\n\n\n<p>Elsewhere, Bank Indonesia unexpectedly raised its benchmark interest rate by 25 basis points on Tuesday, taking the policy rate to 5.50%.<\/p>\n\n\n\n<p>The off-cycle move underscores the central bank&#8217;s efforts to support the rupiah amid declining foreign-exchange reserves and subdued investor demand for Indonesian assets. The rupiah jumped nearly 1% against the dollar \u2014 its strongest daily gain in more than a year.<\/p>\n\n\n\n<p>Meanwhile, the Japanese yen&#8217;s USD\/JPY pair traded unchanged above the 160-yen mark \u2014 levels at which markets tend to get nervous about a potential intervention from Tokyo.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Dollar pulls back: The DXY dipped 0.1% to 99.93, just below Monday&#8217;s two-month peak of 100.21. Israel-Iran halt attacks: Both sides paused strikes following Trump&#8217;s diplomatic intervention. Trump&#8217;s &#8220;total victory&#8221; declaration: The president said the U.S. was close to declaring victory and oil prices would fall sharply. Ceasefire fragility persists: Investors remain cautious &hellip;<\/p>\n","protected":false},"author":9,"featured_media":127130,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,37,36],"tags":[],"class_list":["post-128211","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=128211"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128211\/revisions"}],"predecessor-version":[{"id":128212,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/128211\/revisions\/128212"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/127130"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=128211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=128211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=128211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}