Dollar heads for weekly loss as global banks turn hawkish

The dollar is set for a weekly decline as global central banks signal rate hikes. Rising energy prices have shifted the outlook for interest rates overseas.

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The United States dollar is on track for its largest weekly decline since late January as global central banks shift toward a hawkish stance. This transition follows a significant surge in energy prices triggered by the conflict involving Israel and Iran, which has disrupted oil and gas supplies and forced policymakers to address rising inflationary pressures.

An illustration showing a collection of U.S. dollar banknotes, captured in May 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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