Dollar Dips as U.S. and Iran Extend Ceasefire Deal

The U.S. dollar declined against major currencies as reports emerged that the U.S. and Iran have agreed to extend their ceasefire. President Trump is set to make a decision on the 60-day extension aimed at easing tensions and reopening the Strait of Hormuz to navigation.

The dollar slipped against major global currencies on Friday, poised for a weekly loss following reports of a U.S. and Iran agreement to prolong their ceasefire. The potential deal aims to ease restrictions through the vital Strait of Hormuz.

President Trump is expected to solidify this deal, allowing for a 60-day extension of the truce, which would facilitate smoother shipping operations. The ceasefire extension comes amid existing tensions over Iran’s nuclear program, contributing to market uncertainties and impacting investor sentiment.

The currency market reflected these developments with the euro and pound sterling making gains against the dollar, while the dollar index remained flat. Inflation data further complicated the scenario, hinting at a likely hold on U.S. interest rates by the Federal Reserve.