Dollar Falls to Pre-Iran War Levels
The dollar index (DXY) fell below the 98 area on Tuesday (April 14), extending its decline to seven consecutive sessions and hitting its lowest level since late February, before the Iran conflict erupted. The decline occurred as market participants reassessed the chances of a permanent US-Iran ceasefire.
Although weekend negotiations failed and President Donald Trump announced a blockade on Iranian oil shipments, he later said Tehran had been in contact and was open to further discussions. Hopes of a ceasefire and the possible reopening of the Strait of Hormuz contributed to pressure on oil prices, eased energy inflation pressures, and reduced market expectations for more aggressive Fed tightening.
Data-wise, US producer inflation rose 0.5% in March—lower than expected—while ADP data showed the economy added 39,250 jobs in the week ending March 28, marking the fourth consecutive week of solid job growth. The market is now monitoring headlines from US-Iran diplomacy, Hormuz and oil dynamics, and upcoming inflation/employment data to determine whether the dollar's weakness will persist or is merely a temporary correction. (Arl)*
Source: Newsmaker.id
