Dollar Holds Decline on US-Iran Deal

2026-05-29 02:19 By Jam Kaimo Samonte 1 min. read

The dollar index hovered around 99 on Friday after weakening in the previous session, as reports that the US and Iran had reached a tentative peace agreement eased concerns over inflation and future interest rate hikes.

Washington and Tehran are reportedly set to extend their ceasefire by 60 days and begin negotiations on Iran’s nuclear program, while also considering unrestricted shipments through the Strait of Hormuz.

However, the report noted that President Donald Trump has not yet approved the proposed terms.

Meanwhile, the latest US PCE price index data showed softer-than-expected inflation readings, helping calm fears that the recent energy shock would significantly worsen the inflation outlook.

Even so, markets continue to expect the Federal Reserve to keep interest rates unchanged well into next year.



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