Dollar Declines Amid U.S.-Iran Ceasefire Talks
The dollar slid against major currencies and faced weekly losses as the U.S. and Iran negotiated to extend a ceasefire and ease shipping restrictions via the Strait of Hormuz. This has impacted global currency markets, with the euro and pound showing slight gains against the dollar.
The dollar fell against major currencies on Friday, heading for a second consecutive weekly loss. This came after reports emerged about the United States and Iran reaching an agreement to extend their ceasefire, facilitating shipping through the Strait of Hormuz. U.S. President Donald Trump was expected to finalize the deal later that day, which would extend the truce by 60 days.
The initial demand for the greenback surged as a safe-haven at the conflict's onset. However, uncertainty about the ongoing situation dented those gains, affecting investor sentiment. Meanwhile, the euro inched up by 0.12% to $1.16620, and the pound sterling increased by 0.18% to $1.3466, marking two consecutive weeks of growth.
The Japanese yen remained stable, trading at 159.27 per dollar, close to intervention triggers. Japan's Finance Ministry confirmed intervention efforts over the past month. Forty billion yen ($73.5 billion) was spent to stabilize the yen. Similarly, the Australian and New Zealand dollars strengthened against the U.S. currency, reflecting changes in central bank policies.
(With inputs from agencies.)
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