Dollar Holds Losses on Iran Deal Hopes

2026-04-21 01:05 By Jam Kaimo Samonte 1 min. read

The dollar index hovered near 98 on Tuesday after declining in the prior session, as markets assessed the potential for a longer-term peace agreement between the US and Iran that could reduce demand for safe-haven assets.

Vice President JD Vance is set to lead the US delegation in Pakistan again, while Tehran is also reportedly sending representatives after earlier indications that it would not participate in further talks.

Meanwhile, President Donald Trump said he is unlikely to extend the current truce if no agreement is reached before it expires this week, adding that the Strait of Hormuz will remain blocked until a deal is finalized.

Oil prices pulled back, easing inflation pressures and tempering expectations for more aggressive central bank policy.

The Federal Reserve is broadly expected to hold rates steady this month and remain on pause through 2026.

Kevin Warsh, President Trump's nominee to lead the Fed, is set to appear for a confirmation hearing in the Senate later today.



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