Dollar Nears Six-Week High Amid Iran Uncertainty
The US dollar held near a six-week high on Friday (May 22), amid conflicting signals about the possibility of a US-Iran peace deal. Investors remained cautious despite hopes for some progress in negotiations.
Washington and Tehran remain steadfast in their respective positions regarding Iran's uranium stockpile and control of the Strait of Hormuz. However, US Secretary of State Marco Rubio said there were "some positive signs" in the talks.
This uncertainty has fueled volatility in global financial markets, but currency movements were relatively calm in Asian trading on Friday as investors awaited further confirmation.
The Dollar Index was slightly higher at 99.23 against a basket of currencies, not far from the peak of 99.515 reached in the previous session, its highest level since April 7.
The euro weakened 0.1% to $1.1607, heading for a second straight weekly decline, while the pound edged lower to $1.342 after April retail data showed its biggest drop in nearly a year, reflecting inflationary pressures stemming from the war in Iran.
The dollar received additional support from US data showing a decline in weekly jobless claims, while manufacturing activity rose to a four-year high in May. This underscores the resilience of the world's largest economy, although the US-Iran conflict remains a geopolitical risk restraining market movements. (asd)
Source: Newsmaker.id
