US Dollar Weakens on US-Iran Ceasefire Deal Reports

US Dollar Weakens on Reports of US-Iran Ceasefire Deal

The U.S. dollar fell against major currencies on Thursday after reports that the U.S. and Iran had reached an agreement to extend a ceasefire. The deal would extend the truce for another 60 days and allow traffic through a strategic waterway.

Market Reactions

The euro gained 0.20% against the dollar to $1.1649. The dollar weakened 0.37% against the Swiss franc. The dollar index (DXY) fell 0.3% to 99, snapping two consecutive sessions of gains.

US Data and Fed Outlook

U.S. inflation increased at its fastest pace in three years in April. Core PCE inflation rose 0.2% month-on-month. Economic growth for the first quarter was revised lower. Analysts say this could allow the Fed to be less aggressive with its higher-for-longer stance.

Yen Intervention Watch

Investors are eyeing whether Japanese officials would intervene to support the yen as it nears the 160-per-dollar level. The yen was up 0.19% against the greenback at 159.22.

The risk-sensitive Australian dollar rose 0.32%, and the New Zealand dollar gained 0.51%.