Dollar Edges Lower as Traders Watch the Iran Deal Clock
The U.S. dollar slipped in choppy trading on Tuesday, while oil eased off session highs, as President Donald Trump threatened mass destruction in Iran if a ceasefire agreement is not reached by a deadline later in the day.
The Bloomberg Dollar Spot Index erased a 0.2% advance to trade 0.2% lower, with currency markets whipsawing amid a steady flow of U.S.-Iran headlines.
Reports said the U.S. struck military targets across Iran’s key oil export hub on Kharg Island as Trump issued fresh threats on social media ahead of his 8 p.m. New York time ultimatum. Iran, in turn, pulled out of ceasefire talks, adding to uncertainty over the conflict’s trajectory.
In major pairs, the euro strengthened, with EUR/USD up 0.3% to 1.1578. ECB Governing Council member Pierre Wunsch told The Wall Street Journal that the central bank may need to raise interest rates several times if the Iran war drags on. EUR/GBP gained 0.1% to 0.87309.
In northern Europe, EUR/SEK jumped 1% to 11.0163 after Sweden’s core inflation unexpectedly slowed to its weakest pace in more than four years, potentially easing pressure on the Riksbank to lift rates. In Asia, USD/JPY rose 0.1% to 159.81, with traders noting that demand in the yen’s downside “tails” is sending a different signal than at-the-money implied volatility as war fatigue collides with intervention risk. Japan’s Prime Minister Sanae Takaichi said she continued to seek talks with Iranian President Masoud Pezeshkian, as well as a call with Trump.
The Australian dollar reversed earlier losses, with AUD/USD up 0.5% to 0.6951 even as S&P Global Australia’s March services PMI fell to 46.3 from 52.8 in February. The Canadian dollar also edged higher, with USD/CAD at 1.3901.
Source : Newsmaker.id
