Currencynewsbreaks Dollar Holds Near Multi-Week Range As Markets Monitor U.S.-Iran Negotiations

Dollar index remained near 99.2, trading within a narrow range since mid-May. Investors watched developments in U.S.-Iran negotiations and the potential reopening of the Strait of Hormuz. Yen hovered near 160 per dollar, a level widely viewed as a potential trigger for Japanese intervention.

According to a Reuters report by Hannah Lang and Stefano Rebaudo, with additional reporting by Satoshi Sugiyama, the U.S. dollar traded in a tight range Tuesday as investors monitored developments in ongoing U.S.-Iran negotiations and the potential reopening of the Strait of Hormuz, a key global oil shipping route. Market participants remained cautious amid uncertainty surrounding the conflict and the durability of a ceasefire reached earlier this year between Washington and Tehran.

Reuters reported that the dollar index, which measures the greenback against a basket of six major currencies, edged higher to 99.216 and has largely remained between 98.9 and 99.5 since May 15. Analysts cited in the report noted that the dollar could strengthen if negotiations fail to advance and upcoming U.S. economic data, including Friday's non-farm payrolls report, continues to point to resilience in the U.S. economy.

The Reuters report also noted that euro zone inflation data reinforced expectations for additional European Central Bank rate hikes, while the Japanese yen weakened to near 160 per dollar, increasing speculation that Japanese authorities could intervene in currency markets. Investors are also awaiting comments from Bank of Japan Governor Kazuo Ueda for further guidance on potential policy tightening.

About CurrencyNewsWire

MENAFN03062026000224011066ID1111207360