Dollar eases on hopes for US-Iran conflict resolution
The dollar fell for a second week as investors remained optimistic about a ceasefire in the Middle East. Strong U.S. jobs data failed to boost the currency.
The United States dollar fell 0.4% to 97.877 on Friday as investors bet on a diplomatic resolution to the conflict with Iran. The dollar index is on track for a 0.3% weekly decline, its second consecutive weekly drop. Easing geopolitical tensions are prompting a shift away from safe-haven assets toward riskier currencies and oil-importing economies.
### Geopolitical De-escalation Drives Risk Appetite Investors are monitoring a fragile ceasefire despite reports of renewed hostilities in the Gulf and an attack on the United Arab Emirates. Ballinger Group analyst Kyle Chapman noted that the U.S. appears to be avoiding escalation to keep the ceasefire intact. This optimism pushed the dollar to its lowest levels since late February.
