Dollar Extends Losses for a Sixth Day on Iran Peace Hopes
The U.S. dollar fell for a sixth straight session on Monday, reversing earlier gains after President Donald Trump said Iran had reached out to his administration about peace talks. Most G-10 currencies strengthened, with the Japanese yen the lone laggard.
The Bloomberg Dollar Spot Index (BBDXY) slipped 0.2% after dropping 1.4% last week—its biggest weekly decline in nearly three months. The gauge had risen as much as 0.5% earlier in the day as the U.S. began a naval blockade of the Strait of Hormuz, but later flipped lower. The move marked BBDXY’s longest losing streak since March 2024, down 1.6% over six sessions.
U.S. 10-year Treasury yields climbed as much as 4 basis points to 4.36% as WTI crude futures jumped more than 9% at one point, before yields erased the move and ended the day nearly 3 basis points lower. “We’ve been called this morning by the right people, the appropriate people, and they want to work a deal,” Trump said at the White House, without specifying who was involved.
EUR/USD rose 0.3% to 1.1762, extending gains for a sixth day and trading at its highest intraday level since March 2. Commerzbank said the euro’s ability to hold above 1.17 suggests markets remain hopeful the latest escalation in the Middle East will ultimately lead to de-escalation, keeping risk premia such as implied EUR/USD volatility comparatively low.
USD/JPY advanced for a third day, briefly rising as much as 0.37% to 159.86 before trimming gains to 159.41. Sterling climbed 0.3% to 1.3507, returning to levels seen in the final week of February before the Iran war began. The Norwegian krone outperformed G-10 peers alongside higher oil prices, while USD/CAD fell for a fifth time in six sessions to 1.3791, below its 200-day moving average at 1.3818.
Source : Newsmaker.id
