Economist Peter Schiff said on X that the US dollar had weakened as oil prices and bond yields rose. He noted that the dollar index fell below 98, erasing earlier gains linked to geopolitical tensions. He linked the move to weaker demand for safe-haven assets and growing inflationary pressure in energy markets.
Schiff also said the dollar’s limited recovery during recent uncertainties suggests weaker long-term support. He warned that rising oil prices and rising yields could continue to put pressure on the currency. He added that energy costs and interest rates are now fueling inflation, further increasing stress on the global position of the dollar.
The U.S. dollar index fell back below 98, giving up all its Iran war-related gains. The dollar’s slight recovery as a safe haven in response to the war shows that its glory days are over. As dollar weakness intensifies, it will add to existing upward pressures on oil prices and bond yields.
— Peter Schiff (@PeterSchiff) May 1, 2026
Oil and yields shape market direction
Oil prices remain high, at times above $110 per barrel, due to supply risks and geopolitical tensions. Rising energy costs are directly fueling inflation expectations in the transportation and manufacturing sectors. As a result, markets adjust their pricing models when oil remains high for extended periods of time.
U.S. Treasury yields recently fell to 4.35% after hitting a nine-month high. Earlier gains reflected stronger inflation data and tighter labor conditions. Schiff said rising yields often indicate fiscal pressure and a shift in investor sentiment toward government debt.
Broader economic data continues to show mixed signals. ISM prices rose to multi-year highs, while jobless claims indicated a strong labor market. Investors are now weighing solid growth and persistent inflation when adjusting their positions across assets.
Pressure on the dollar and market reactions
Schiff said earlier that a weak dollar tends to drive up inflation by increasing the costs of imports. A weaker dollar also makes commodities like oil more expensive globally. He expects continued pressure on purchasing power if these trends persist.
However, the dollar’s movements currently show liquidity changes globally but do not signify a definitive long-term decline. This is supported by a higher level of activity from foreign central banks and continued interest in purchasing government securities.
At the time of writing, Bitcoin has responded to general economic conditions and reached a price of over $78,000 thanks to easing geopolitical tensions. The cryptocurrency market was also mixed for Ethereum, XRP and Solana.