Traders bid up the euro after Iran submitted a draft framework to resolve tensions with the US, lifting risk sentiment.
The euro rose 0.21% against the dollar on Wednesday, trading at 1.1649, as markets reacted to reports that Iran presented a draft framework to the US aimed at ending the conflict. The move lifted risk appetite, pressuring the dollar across the board.
Earlier in the session, EUR/USD hit daily lows before rebounding on the geopolitical developments. The pair had struggled for direction amid mixed signals on monetary policy and economic data.
No immediate market reaction beyond the currency move was reported, though equities and commodities remained supported by the improved sentiment.