The dollar is close to its peak in two months. No progress in talks with the U.S., Iran says
US dollar - near two-month high due to escalating conflict in the Persian Gulf / Photo: Volodymyr TVERDOKHLIB / Shutterstock
On Thursday, June 4, the U.S. dollar traded near a two-month high - the resumption of hostilities in the Persian Gulf the day before undermined investor interest in risky assets, writes Reuters. Despite a ceasefire agreement reached by Israel and Lebanon, there is no progress in broader Iran-US talks, Iranian Foreign Minister Abbas Araqchi said late in the evening of June 3, Bloomberg reports.
Details
The U.S. dollar index, which measures the value of the U.S. currency against a basket of other major currencies including the yen and the euro, stood at 99.46 points on June 4, registering just below a two-month high of 99.56 reached in the previous session.
The European currency rose against the U.S. dollar by 0.1% to $1.1609. The British pound traded without significant changes - at $1.3427.
"At this stage it is hard to argue against a strengthening US dollar," said ING currency strategist Francesco Pezole (quoted by Reuters). "Macroeconomic data continues to point to the resilience of the US economy, while new military clashes between the US and Iran have triggered a risk-off attitude among investors in global markets," he added.
Context
On Wednesday, June 3, Iranian attacks on Kuwait damaged a local airport and injured dozens of people, while the U.S. military struck Iranian positions near the Strait of Hormuz, significantly complicating prospects for a diplomatic end to the conflict, Reuters notes.
Despite the news on the morning of June 4 that Israel and Lebanon had agreed to a ceasefire, a broader peace agreement in the Middle East remains elusive, the agency explains. Thus, Iranian Foreign Minister Abbas Araqchi said late in the evening of June 3 that there was no "tangible progress" in talks with the US. He did not give details about this dialog. This situation keeps oil prices high and supports demand for the U.S. dollar as a safe haven currency, notes Reuters. Brent contracts on June 4 are trading around $96 per barrel, WTI costs about $95.
This article was AI-translated and verified by a human editor
