Dollar Pares Gains on Iran Deal Hopes

2026-04-27 04:27 By Jam Kaimo Samonte 1 min. read

The dollar index slipped to around 98.5 on Monday after briefly climbing as high as 99.3 earlier in the session, as markets reacted to reports that Iran had submitted a new proposal to the US aimed at reopening the Strait of Hormuz and easing tensions.

The proposal, reportedly delivered via Pakistani mediators, called for an extension of the ceasefire to enable progress toward a lasting settlement, while postponing nuclear negotiations until the US blockade of the strait is lifted.

Earlier in the session, the dollar jumped after President Donald Trump cancelled plans to send senior envoys for a second round of talks with Iran, while Tehran reiterated it would not engage in negotiations under threats or blockade conditions.

Meanwhile, the Federal Reserve is widely expected to keep its policy rate unchanged on Wednesday, a meeting that could mark Jerome Powell’s final session as chair before Kevin Warsh is expected to assume the role in May.



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