# Dollar retreats as traders focus on Iran, Fed policy

> The dollar dipped against most major currencies on Monday as traders assessed whether progress toward ending the Iran war was likely soon. Oil rose about 2% to a two-week high on supply worries, despite a report that the US would waive some Iranian crude sanctions. Markets priced about a 51% chance of a Fed rate hike.

- Date: 2026-05-17 · published 2026-05-17T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/19471-dollar-retreats-as-traders-focus-on-iran-fed-policy
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Oil-driven inflation fears keep Fed hike odds elevated, which supports the dollar and weighs on dollar-priced commodities. Swings in crude also move input and freight costs.

## Read by commodity

- DXY: bearish ▼
- WTI: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-10-21 | [Dollar dips as traders wait on Fed; Aussie gains By Reuters](https://feedsoft.ai/events/650-dollar-dips-as-traders-wait-on-fed-aussie-gains-by-reuters.md) | +0.5% | — |
| DXY | 2025-08-06 | [Dollar falls as traders bet on more rate cuts](https://feedsoft.ai/events/23519-dollar-falls-as-traders-bet-on-more-rate-cuts.md) | -0.5% | -0.3% |
| DXY | 2017-04-19 | [Goldman Sachs dumps dollar as reflation trade retreats - Asia Times](https://feedsoft.ai/events/71688-goldman-sachs-dumps-dollar-as-reflation-trade-retreats-asia-times.md) | +0.2% | -0.2% |
| DXY | 2024-08-26 | [Interest rates: US dollar sinks as traders position for rate cuts by the Federal Reserve](https://feedsoft.ai/events/28691-interest-rates-us-dollar-sinks-as-traders-position-for-rate-cuts-by-the-federal.md) | +0.7% | -0.0% |
| DXY | 2021-01-04 | [Baht rises on dollar sales due to Fed's fiscal policy](https://feedsoft.ai/events/49404-baht-rises-on-dollar-sales-due-to-fed-s-fiscal-policy.md) | -0.0% | +0.9% |
| WTI | 2026-07-31 | [Canadian Dollar retreats as USD recovers on Fed, Middle East risks](https://feedsoft.ai/events/18587-canadian-dollar-retreats-as-usd-recovers-on-fed-middle-east-risks.md) | -9.5% | +1.7% |
| WTI | 2023-04-17 | [Indian rupee declines as dollar jumps on Fed policy reassessment - Markets - Business Recorder](https://feedsoft.ai/events/36659-indian-rupee-declines-as-dollar-jumps-on-fed-policy-reassessment-markets.md) | -5.7% | -15.2% |
| WTI | 2023-08-31 | [FX Insights: Uptrend in Canadian Dollar \| Traders' Insight](https://feedsoft.ai/events/34815-fx-insights-uptrend-in-canadian-dollar-traders-insight.md) | +6.4% | +12.3% |

## Sources

- streetinsider.com: https://www.streetinsider.com/Reuters/Dollar+retreats+as+traders+focus+on+Iran%2C+Fed+policy/26509012.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.