Dollar Holds Near Six-Week Low
The US dollar hovered near its lowest level since early March on Thursday, as market participants reduced safe-haven positions due to White House optimism about the chances of a peace deal with Iran. President Donald Trump said the US-Israel war against Iran is "almost over," while the White House suggested a return to face-to-face talks in Pakistan is possible.
Sentiment is also influenced by signals from Tehran regarding the Strait of Hormuz. A source familiar with Iran's position told Reuters that Iran could consider allowing ships to pass freely through the Omani side of the Strait of Hormuz if a deal is reached to prevent further conflict, reinforcing market expectations that the risk premium for war is beginning to wane.
The dollar index (DXY) held steady at 97.618 after falling for eight consecutive sessions through Wednesday, erasing most of the gains made as the war escalated. ANZ analysts believe the market is now "looking beyond the conflict" and pricing in some kind of resolution, potentially adding pressure on the dollar if the 98 level is breached, with the DXY down 0.7% so far this week and heading for its second consecutive weekly decline.
In Europe, the euro briefly surpassed US$1.18 and was on track for a ninth consecutive day of gains, while sterling traded at US$1.3569, up about 0.2%. Both held near their highest levels since before the Iran war began in February, reflecting a market shift from defensive to riskier assets.
In Asia, the offshore yuan was at 6.8156 per dollar, near a three-year high, while the onshore yuan was at 6.8169. The yuan's strengthening came amid Chinese data showing first-quarter GDP growth of 5.0%, beating expectations, although retail weakness added urgency to a recovery in domestic consumption. The Australian dollar strengthened to a four-year peak of US$0.7193, the New Zealand dollar to US$0.59170, near a one-month peak, and the yen strengthened to 158.38 after Japan's finance minister said Tokyo and Washington were determined to strengthen communication on exchange rates. (asd)
Source: Newsmaker.id
