The US Dollar Index falls over 0.7% to below 98.00 amid optimism over potential US-Iran peace negotiations.
The US Dollar Index (DXY) dropped below 98.00 on Wednesday, declining more than 0.7% as investors reacted to reports of progress in US-Iran peace talks. The move erased recent gains tied to geopolitical tensions, bringing the index near pre-war levels.
Prior to the drop, the DXY had traded above 98.50 earlier in the week, supported by safe-haven demand. Analysts noted the shift in sentiment as markets priced in reduced risk premiums, though no formal agreement has been announced.
The dollar weakened broadly against major peers, reflecting a broader risk-on tone in global markets.