DXY Eases from 101.13 High but Holds Near Yearly Peaks

The US Dollar Index (DXY) retreated from the 101.13 handle reached earlier in the session, though it remains close to its yearly highs. The pullback occurred during Friday's European trading hours, with market activity subdued by the Juneteenth bank holiday in the United States.

Traders are also weighing the implications of the US-Iran peace negotiations, which have added a layer of geopolitical uncertainty to dollar demand. Despite the slight easing, the index continues to trade in strong territory, supported by the broader risk-off tone and hawkish Federal Reserve expectations.