Dollar Weakens Slightly, Markets Eye Iran Ceasefire Push
The US dollar weakened on Monday (April 6) as investors assessed mediators' efforts to secure a temporary ceasefire in the war in Iran. The dollar index fell 0.1% to 99.89 at 9:08 a.m. ET, while the euro rose 0.3% to $1.1555 and the pound strengthened 0.4% to $1.3249.
These movements reflect waning demand for safe havens amid diplomatic signals, although messages regarding the direction of the conflict remain mixed. Reuters reported that the US and Iran have accepted a framework plan for a cessation of hostilities, but Tehran rejects the immediate opening of the Strait of Hormuz. The framework, which is said to be mediated by Pakistan, includes an immediate ceasefire followed by talks toward a broader settlement within 15–20 days.
Axios previously reported that the US, Iran, and regional mediators were discussing the option of a 45-day ceasefire as part of a two-phase deal that could lead to a permanent end to the war. Meanwhile, President Donald Trump threatened to attack Iranian power plants if Tehran did not reopen Hormuz—the route for about a fifth of global oil flows—by Tuesday evening, after previously setting a Monday deadline.
The dollar has strengthened sharply since the conflict began in late February due to its status as a relative safe haven. However, any progress toward a pause in the conflict has the potential to trigger a rotation into riskier currencies, while uncertainty over Hormuz and Trump's deadline has kept volatility high.
Source: Newsmaker.id
