Dollar falls as Middle East peace hopes and yen support
The dollar fell as markets weighed a potential Iran-U.S. peace proposal. Meanwhile, Japan continued verbal and physical intervention to support the yen.
The United States dollar fell to 97.950 on Thursday as optimism for a de-escalation in the conflict with Iran lowered Treasury yields. The greenback remains well below the previous week's peak of 99.092. Potential peace talks could ease inflationary pressures and reduce the risk of future interest rate hikes.
### Middle East Peace Hopes Pressure Dollar The dollar index retreated after Iran confirmed it is reviewing a peace proposal that could end the current war. Markets responded by paring back the risk of future interest rate hikes as oil prices slid overnight. This shift pulled Treasury yields lower and weakened the dollar against major peers.
