Currency Markets React to Middle East Ceasefire & Fed Speculations
The U.S. dollar depreciated while the Australian and New Zealand dollars appreciated following a ceasefire announcement between Israel and Iran by President Trump, igniting a risk rally in markets. Concurrently, comments from Fed officials suggest possible interest rate cuts, adding pressure on the dollar.
The value of the U.S. dollar diminished on Tuesday as the Australian and New Zealand currencies gained ground following President Donald Trump's announcement of a ceasefire between Israel and Iran. The news received widespread approval from investors and triggered a risk rally across global markets.
Trump assured that a 'complete and total' ceasefire would commence, aiming to resolve the 12-day conflict. Confirmation of the agreement came from both Iranian and Qatari officials, while Israeli media reported that Prime Minister Benjamin Netanyahu concurred, contingent on Iran halting its attacks.
Amid this geopolitical development, the Australian dollar rose 0.35% to $0.6483, and the New Zealand dollar climbed 0.37% to $0.5998, buoyed by increased risk appetite. Meanwhile, dovish remarks from Federal Reserve figures have added pressure on the dollar, with speculation of potential interest rate cuts sending ripples through financial markets.
(With inputs from agencies.)
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