NEW YORK, June 12 The dollar steadied on Friday but remained on track for a weekly loss, as markets monitored negotiations over a deal that could end the Middle East conflict.
Traders were also digesting unprecedented demand for shares in SpaceX, which raised $75 billion in an initial public offering and jumped about 25% in its Nasdaq debut
The euro was little changed at $1.1577, hovering near a one-week high and set for a weekly gain after the European Central Bank delivered its first interest rate hike in three years on Thursday. PEACE DEAL Leaked terms of a proposed memorandum to end the war in the Gulf outlined by Western, Pakistani and Iranian sources on Friday appeared to favour Iran, drawing criticism from U.S. President Donald Trump, who called the reports inaccurate.
Trump’s announcement of a deal on Thursday had prompted Wall Street shares to rally, oil prices to slip, and the U.S. dollar to fall. Markets are pausing as they assess prospects for a peace deal and the impact of the SpaceX IPO, with investors watching whether funds will shift from equities or cash, said John Velis, FX and macro strategist at BNY. “The hoped for good news on the ceasefire in the Middle East had a big reaction overnight and I think we came in this morning and we have the SpaceX IPO and a bunch of central bank meetings next week,” Velis said. The U.S. dollar was up 0.17% against Japan’s currency at 160.195 yen, holding near a key level that often triggers concern about intervention from Tokyo.