Dollar hovers near three-week lows as markets await Hormuz deal, payrolls

The greenback traded near its lowest levels in three weeks against a basket of major currencies on Thursday, as geopolitical and economic uncertainties kept investors on edge.

President Trump stated that a deal to reopen the Strait of Hormuz is imminent, but traders have learned to treat such comments with caution, given past reversals.

Meanwhile, attention is turning to the U.S. payrolls report, which could shape expectations for the Federal Reserve's next move in September. The dollar's near-term direction hinges on both the Hormuz developments and the labor market data.