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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Dollar Holds Losses on Iran Deal Hopes
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.
2026-04-21
Dollar Pares Most Gains
The dollar index was little changed at 98.1 on Monday, hovering near the pre-conflict levels seen last week and giving back most of its early gains from the Asian session, as investors focused on escalating tensions in the Middle East and a fresh setback in peace negotiations. On Sunday, the US said it had seized an Iranian cargo ship that attempted to breach its naval blockade, while Iran vowed to retaliate, heightening concerns over a renewed escalation in hostilities. Uncertainty also persists over whether US and Iranian officials will meet ahead of the expiry of a 14-day ceasefire on Tuesday, with Tehran indicating it will not take part in a second round of talks. Meanwhile, oil prices edged higher but remained below recent peaks. Still, concerns about spillovers to inflation and the prospect of rate hikes by the Fed continue to lend support to the greenback.
2026-04-20
Dollar Advances on Middle East Escalation
The dollar index climbed to around 98.3 on Monday, recovering part of last week’s losses as renewed US-Iran tensions lifted demand for the safe-haven currency. President Donald Trump said the US Navy fired on and seized an Iranian-flagged cargo vessel in the Gulf of Oman after it ignored warnings to stop while departing the Strait of Hormuz. Tehran also reversed plans to reopen the strait following Washington’s refusal to lift its blockade on Iranian ports and signaled it would not take part in a second round of negotiations. The prolonged conflict has triggered a severe energy supply shock, intensifying inflation risks and raising the prospect of further central bank rate hikes, while dampening expectations for Federal Reserve rate cuts this year. The Fed is widely expected to keep its policy rate unchanged this month and to remain on hold for the rest of 2026.
2026-04-20