The dollar suffered its worst drop in a month after Trump's words on the closeness of peace with Iran
Hopes for a peace agreement have reduced demand for the U.S. currency as a safe haven
The dollar suffered its worst drop in a month due to Trump's statements on Iran. Photo: Blossom Stock Studio/Shutterstock
The dollar experienced the sharpest drop in more than a month, Bloomberg calculated. US President Donald Trump's statement on progress in negotiations to end the war with Iran reduced demand for protective assets, the agency explains.
The Bloomberg Dollar Spot index, which measures the dollar against a basket of major world currencies, slipped 0.3% on June 11, experiencing its sharpest one-day drop since Ma. 6. Until then, since the end of February, when the Iranian crisis began, the U.S. currency had strengthened by 1.6%.
"The tone of the news became noticeably more constructive, strengthening expectations of a peace agreement soon. This has put pressure on the dollar," commented Bank of America currency strategist Alex Cohen.
The cost of hedging the risks associated with the growth of the dollar decreased on June 11. Nevertheless, as Bloomberg specifies, the market of monthly options still reflects traders' confidence in the strengthening of the U.S. currency.
Trump on Thursday said he canceled the military strikes that the U.S. was going to carry out on Iran that day. The U.S. leader attributed this to the fact that the peace process has reached the highest level of Iranian leadership. Iran's Foreign Ministry said on Friday that a memorandum of understanding with the US was being negotiated, Press TV reported. The mediators in the talks, Pakistan and Qatar, are currently working to resolve the remaining differences, but the deal is not yet final, the report said.
This article was AI-translated and verified by a human editor
