Dollar Slips to 10-Day Low as US-Iran Peace Deal Boosts Risk Appetite
By Aboki Forex —
The U.S. dollar fell on Monday, hitting a 10-day low against the euro and sterling. An agreement to end the U.S.-Iran war pushed oil prices and Treasury yields lower while boosting investor risk appetite.
U.S. President Donald Trump said a memorandum of understanding aimed at ending the Gulf war had already been signed by the United States and Iran. Reports from both sides boosted confidence that the deal would hold, according to Marc Chandler, Chief Market Strategist at Bannockburn Global Forex.
“Markets want to believe it,” Chandler said.
According to accounts from both sides, the agreement would reopen the blockaded strait and extend a ceasefire for a 60-day negotiation period. During that time, contentious issues such as the future of Iran’s nuclear programme are expected to be addressed. An official signing ceremony is scheduled for Friday in Geneva.
Despite the optimism, markets remain cautious. Investors await further details and the formal signing. “The level of mistrust is so great that I think it’s naive to assume it’s going to be very smooth,” Chandler added.
The U.S. Dollar Index fell 0.20% to 99.60. The euro rose 0.25% to $1.1597, after earlier reaching $1.1622, its highest level since June 5. Sterling strengthened by 0.1% to $1.342. The Japanese yen weakened 0.03%.