US Dollar Heads for Second Weekly Fall Amid Gulf Tensions
The dollar index fell 0.28 percent to 97.96 as markets remained cautiously optimistic about the stability of a Middle East ceasefire despite recent US and Iran hostilities. Investors are now looking toward the upcoming non-farm payrolls report and potential currency intervention from Japanese authorities.
The dollar index fell 0.28% to 97.96, positioning the currency for a second consecutive weekly decline of 0.22%. Investors are maintaining cautious optimism as a fragile ceasefire between the United States and Iran holds despite recent hostilities. The dollar's retreat reflects a shift in risk appetite as markets focus on upcoming labor data.
### Geopolitical Tensions and the Gulf Ceasefire A ceasefire established on April 7 remains in place even as Iran targeted sites in the United Arab Emirates. Oil prices rose modestly following the effective closure of the Strait of Hormuz by Iranian forces. ING strategist Francesco Pesole said China is pressuring the U.S. to secure a Gulf deal before the May 14-15 summit.
