The dollar slipped away from its gains on Monday after Federal Reserve Vice Chair Michelle Bowman hinted at reducing interest rates as soon as July. This stance echoed comments made by Governor Christopher Waller last Friday and sparked concerns that lower borrowing costs might reduce the dollar’s relative appeal. As tensions between Iran and Israel escalated, the greenback initially rose in response to US airstrikes against nuclear sites, but eventually reversed its gain.
Source: https://www.bloomberg.com/news/articles/2025-06-23/dollar-surges-as-mideast-escalation-spurs-inflation-risk