Investors await US economic reports and Iran deal progress, keeping the dollar index in a narrow range near 99.13.
The dollar index edged 0.05% lower to 99.13, remaining within a tight 98.9-99.5 range since mid-May. Traders are balancing geopolitical risks, including potential Iran-US negotiations, against upcoming US economic data that could influence Federal Reserve policy decisions.
Oil prices dipped after President Trump indicated talks with Iran were ongoing, despite reports of Tehran suspending indirect negotiations. A resolution could reduce safe-haven demand for the dollar while easing pressure on oil-importing economies like Japan and the euro zone.
Market caution persists due to the fragile April ceasefire between Washington and Tehran. Any setbacks in negotiations may trigger volatility, though recent progress has provided temporary relief.