USD Extends Losses After US-Iran Interim Deal – MUFG
MUFG’s Lee Hardman notes the US Dollar has extended losses after the US and Iran reached an interim agreement to end conflict and reopen the Strait of Hormuz.
Analysts at MUFG, led by Lee Hardman, observe that the US Dollar has continued to weaken following a reported interim deal between the United States and Iran. The agreement aims to de-escalate tensions and reopen the Strait of Hormuz, a critical chokepoint for global oil transit.
Hardman’s comments suggest the currency market is pricing in a reduced geopolitical risk premium, which had previously supported the greenback. The immediate impact has been a further decline in the dollar against major peers.
No specific financial guidance or trade recommendations were offered in the note.
Source: FXStreet Forex News