The US Dollar declined on Monday following President Donald Trump’s announcement to postpone targeting Iran’s electrical infrastructure. Trump cited "productive talks" between the two nations, a move that eased near-term geopolitical fears and provided a slight boost to risk-on assets.
اضافة اعلان
The Decision and Market Reaction
Trump stated via Truth Social that he instructed the Department of War to delay "all military strikes" against Iranian power plants and energy infrastructure for five days. This announcement came just hours before a deadline he had set for Tehran to fully reopen the Strait of Hormuz, under threat of destroying Iran's power grid.
Steven Englander, Head of G10 FX Research at Standard Chartered, commented:
"The market views this as a reduction in short-term risk within the energy sector, as nations are not expected to bomb each other's infrastructure over the next few days. This doesn't mean the worst is over, but the probability of it happening in the immediate future has decreased."
Currency Performance Metrics
Immediately following Trump’s post, the dollar saw the following shifts:
Against the Euro: Dropped 0.7%.
Against the Yen: Dropped 0.6%.
British Pound: Rose 0.92% to $1.3464.
US Dollar Index (DXY): Fell 0.6% to 98.94 points.
The index recorded its first weekly decline last Friday since the war began. The inflationary impact of high oil prices has prompted central banks to adopt hawkish monetary policies, which in turn supported non-dollar currencies.
Diplomatic Channels
According to the US website Axios, representatives from Turkey, Egypt, and Pakistan met with Trump’s special envoy, Steve Witkoff, and separately with Iranian Foreign Minister Abbas Araghchi, signaling intense mediation efforts.
