A potential US-Iran peace agreement lifts risk sentiment, pressuring the Dollar Index ahead of Friday’s expected signing.
The Dollar Index extends losses as markets price in a US-Iran peace deal, expected to be signed on Friday. Reports suggest Iran has already agreed to terms, boosting risk appetite and weighing on the greenback.
The move follows a broader shift in sentiment, with investors reducing safe-haven dollar positions amid easing geopolitical tensions. Prior sessions saw the index stabilize near key support levels, but optimism over the deal has accelerated the downtrend.
Equities and commodities rally on the news, while Treasury yields hold steady, reflecting a modest risk-on rotation.