A 60-day ceasefire extension and eased shipping restrictions in the Strait of Hormuz weigh on safe-haven dollar demand.
The dollar fell against major currencies Friday, poised for a weekly loss after the US and Iran agreed to extend their ceasefire by 60 days. The deal includes resuming traffic through the Strait of Hormuz, reducing geopolitical risk premiums that had supported the greenback.
Earlier gains driven by safe-haven flows and limited US exposure to energy inflation have reversed as uncertainty over the conflict’s trajectory eased. The euro rose 0.12% to $1.16620, while the pound gained 0.18% to $1.3466, both set for weekly advances.
Traders cited a lack of clarity on central bank policy and geopolitical developments as key drivers of recent currency volatility.