The U.S. dollar fluctuated on Monday as shifting hopes—rising and fading—over reaching an agreement to end the war in the Middle East kept investors on edge during a week in which they are also looking for signals from central bank policymakers regarding the conflict’s impact.
اضافة اعلان
U.S. President Donald Trump canceled his envoys’ planned visit to Islamabad at the start of the week, saying that Iran could reach out if it wanted to negotiate an end to the two-month-long war, leaving the vital Strait of Hormuz effectively closed.
However, investor confidence improved after Axios reported, citing sources, that Iran had submitted a new proposal to the United States through Pakistani mediators to reopen the Strait of Hormuz and end the war, while postponing negotiations over the nuclear issue to a later stage.
The euro recovered its earlier losses and was trading nearly unchanged at $1.1726, while the British pound slipped to $1.3544. Meanwhile, the U.S. Dollar Index, which measures the American currency against major rivals, stood at 98.465 points, down 0.18%.
The dollar had benefited in March from demand for safe-haven assets when the war erupted, but it lost most of those gains on hopes of reaching a peace agreement this month. It has stabilized in recent days following stalled talks between the United States and Iran.
Brent crude futures rose 1% to reach $107.20 per barrel, while U.S. West Texas Intermediate crude climbed to $95.80 per barrel, up 1.5% on Monday.
The Japanese yen remained steady at 159.26 per dollar, slightly below the critical 160 level that traders fear could prompt Japan to intervene in currency markets.
The yen has remained stuck around the 159 range since early March, as investors assess the impact of the oil crisis on Japan, which relies heavily on imported energy, as well as the path of monetary tightening by the Bank of Japan.
It is widely expected that both the Federal Reserve, the European Central Bank, and the Bank of England will leave interest rates unchanged this week, while markets await policymakers’ views on the war’s impact on the economy and the future path of interest rates.
Reuters
