+34
The dollar slipped against most major currencies on Monday as oil prices fell after an Iranian news report indicated that the United States was set to waive sanctions on Iranian crude.
The dollar slipped against most major currencies on Monday as oil prices fell after an Iranian news report indicated that the United States was set to waive sanctions on Iranian crude.
Iran reportedly agreed to a nuclear freeze, impacting oil prices and markets. NEW YORK — The dollar slipped against most major currencies on Monday as oil prices fell and 10-year U.S. Treasury yields withdrew from a 15-month high, after an Iranian news report indicated that the United States was set to waive sanctions on Iranian crude.
A separate report from Al Arabiya also said that Iran had agreed to a long-term nuclear freeze instead of a complete dismantling of its facilities.
"Clearly that was the impetus this morning," said Lou Brien, market strategist at DRW Trading. The dollar index, which tracks the U.S. currency against six others, dipped 0.17% to 99.10, having posted its strongest weekly performance in three months last week. The dollar had been buoyed by energy disruptions in the Middle East, as the U.S. economy is better positioned to absorb higher costs than many of its peers.
However, a global bond sell-off — which extended earlier on Monday before reversing — has also highlighted growing concerns that rising energy prices could push central banks toward higher interest rates.
"Although expectations regarding the Fed had shifted significantly toward a more restrictive monetary policy from the outset, market participants were still reluctant to bet on interest rate hikes. This changed last week, with expectations regarding the Fed shifting most markedly among the G10," said Commerzbank strategist Michael Pfister. Some of the market moves are also likely due to investors testing whether Kevin Warsh, the newly appointed Federal Reserve chair, will react to higher inflation if needed, said Brien.
"They're going to want to see that Warsh is his own man rather than the president's man at the Fed. " Warsh has argued there is room to lower rates, though persistent inflation — driven in part by the war in the Middle East — could frustrate those hopes. Markets are pricing in a greater than 52% chance that the Fed will raise rates by January.
Japanese officials intervened several times in late April and into early May, which helped the yen to strengthen, though the currency has since surrendered much of those gains. Japan's government is likely to issue debt as part of funding for a planned extra budget to try to limit the economic impact of the Middle East war, a government source with direct knowledge of the deliberations told Reuters on Monday.
The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written. Trump dismisses his $10B lawsuit against IRS, court filing shows
Scratch the next story
Traffic Weather Sports Classifieds Cars Jobs Homes Television Radio Salt Lake Utah Local Finance International Politics Business
United States Latest News, United States Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
US President Trump Posts Bizarre AI-Generated War Pictures, Warns Iran on Truth SocialPresident Trump, on his Truth Social platform, shared several AI-generated images that depict him on a warship amidst a sea storm. The pictures also show the President menacingly pressing a red button from a control room in outer space and lasering an Iranian plane. The content of the post is perceived as a threatening message directed at Iran, raising fears that he may resume strikes if the conflict isn't resolved. The post also highlights the tense situation between the US and Iran and the recent offer by Iran to negotiate an end to the conflict.
Read more »
Iran latest: US-Iran ceasefire remains shaky as both sides signal readiness to fight againSigns of strain in the ceasefire between the U.S. and Iran seemed to arise over the weekend, ranging from a new threat by President Donald Trump to Iranian state TV presenters going on-air armed.
Read more »
US and Iran Swap Proposals Amid Middle East TensionsDiplomats from the US and Iran are exchanging proposals to end the conflict in the Middle East, but both sides face challenges in closing the gaps. The US has warned Iran about the 'clock ticking' and demanded fast progress, while Iran has defended its stance and emphasized the importance of a 'permanent end to the war'. Iran's top security body has also announced the formation of a new body to manage the strategic Strait of Hormuz, which has been closed by Iran.
Read more »
US and Iran Swap Proposals Amid Middle East TensionsDiplomats from the US and Iran are exchanging proposals to end the conflict in the Middle East, but both sides face challenges in closing the gaps. The US has warned Iran about the 'clock ticking' and demanded fast progress, while Iran has defended its stance and emphasized the importance of a 'permanent end to the war'. Iran's top security body has also announced the formation of a new body to manage the strategic Strait of Hormuz, which has been closed by Iran.
Read more »