The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, rebounds on Tuesday as mixed signals surrounding US-Iran negotiations help the index recover earlier intraday losses.
At the time of writing, the DXY trades around 99.22 after hitting a daily low near 99.05
US-Iran peace negotiations remain in limbo after Iran’s semi-official Fars News Agency reported that exchanges between Tehran and Washington have been paused for at least a few days over the proposed MoU. The report contrasts with comments from US President Donald Trump, who said on Monday that talks are continuing “at a rapid pace” and that a deal could be reached within the next week. However, both sides still appear far apart on several major issues.
US Secretary of State Marco Rubio said on Tuesday that the first condition in negotiations is for Iran to reopen the Strait of Hormuz, while Tehran must also agree on the disposition of its highly enriched uranium. Traders remain cautious about the prospects for a near-term agreement and the reopening of the Strait of Hormuz, keeping Oil prices elevated. West Texas Intermediate (WTI) Crude Oil trades around $91 after briefly dipping toward $88 earlier in the day.