The US Dollar (USD) weakened against several major currencies during trading on Monday (November 9, 2026), as easing concerns over an escalation in the US-Iran conflict prompted investors to return to riskier assets.
The US Dollar Index (DXY) fell 0.47% to 101.75, while the EUR/USD pair rose 0.64% to 1.1213, and the GBP/USD pair climbed 0.60% to 1.3429. The dollar also weakened against the Japanese yen, with the USD/JPY pair dropping 0.41% to 157.89. Market sentiment improved after President Donald Trump stated that new attacks against Iran were unlikely while diplomatic efforts were underway; meanwhile, Brent crude oil prices plummeted nearly 6% to US$92.57 per barrel.
The weakening of the greenback was also driven by a resurgence in investor interest in stocks, following a major sell-off in the technology and artificial intelligence (AI) sectors the previous week. Major Wall Street indices rebounded, led by the Nasdaq, while the Australian dollar rose 0.95% to US$0.6922, and the New Zealand dollar surged 1.54% to US$0.56301. Enrique Diaz-Alvarez, Chief Economist at Ebury, noted that excessively large speculative positions in the US Dollar have limited its potential for further gains. He also suggested that the euro could potentially recover in the medium term, as the market may be underestimating the prospects for an economic recovery in the Eurozone.
Nevertheless, investor attention has now shifted toward US consumer inflation (CPI) data, scheduled for release on Tuesday, with a projected monthly increase of 0.3%. According to the CME FedWatch Tool, the market estimates an approximately 82% probability that the Federal Reserve will raise interest rates at its December 8–9 meeting. Meanwhile, the yield on the 10-year US Treasury note has edged up to 4.87%, signaling that expectations for a tight monetary policy persist. Given these conditions, the future direction of the US dollar will be heavily influenced by US inflation data, the outlook for Federal Reserve interest rates, and developments in diplomacy between Washington and Tehran.
Outlook
The weakening of the US dollar suggests that improving risk sentiment is reducing investor demand for the greenback as a safe-haven asset. Hopes for a resolution to the US-Iran conflict and a decline in oil prices have served as the primary catalysts for this shift in sentiment.
However, one crucial factor warrants attention: the 82% probability of a Federal Reserve rate hike in December remains significant. This means that the pressure on the US dollar may not necessarily persist if the Consumer Price Index (CPI) data reveals inflation levels higher than anticipated.
Source: Newsmaker.id