Dollar softens amid Middle East peace talk reports

The dollar fell on Friday following reports of possible peace talks between the U.S. and Iran. Investors are now awaiting a busy week of central bank decisions.

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The dollar softened during Friday's trading session as potential signs of diplomatic progress emerged between the United States and Iran, though the currency remains on track for its first weekly gain in nearly a month. Market sentiment shifted late in the European session, pushing the dollar down 0.23% to 98.595 as investors balanced geopolitical risks against the possibility of peace talks.

A collection of U.S. dollar bills is displayed in an illustrative photo from March 2026. REUTERS/Dado Ruvic/Illustration
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