Dollar Slides 1.6% Weekly After US‑Iran Ceasefire
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- dollar fell 0.24% on Friday and is 1.6% lower so far this week as the ceasefire reduced tail risk.
- Euro rallied 1.8% this week, trading at $1.17255, reflecting the dollar's weakness.
- Sterling gained 2% since Monday, reaching $1.346, as investors shifted from the dollar.
- yuan was set for its biggest weekly rise in 15 months, trading at its strongest since 2023 despite the Iran war.
- U.S. consumer prices rose by the most in nearly four years in March, driven by higher oil prices and tariffs.
- Marc Chandler, chief market strategist at Bannockburn Global Forex, said markets remain optimistic despite the ceasefire fraying.
- Jason Wong, senior strategist at BNZ, warned sentiment could turn quickly if weekend peace talks falter, even though the ceasefire removed tail risk.
Why it matters: Investors holding euros, sterling and yuan gain as the dollar retreats, while US dollar‑denominated assets lose value; the market’s optimism hinges on the success of weekend US‑Iran peace talks, making sentiment swing vulnerable to any setback and keeping oil‑linked inflation pressures in check.
