Forex News: U.S. Dollar Advances As Hopes Of U.S.-Iran Deal

U.S. Dollar Advances As Hopes Of U.S.-Iran Deal Diminish After Trump's Message

(RTTNews) - The U.S. Dollar value edged higher on Thursday as oil supply disruption concerns returned to markets after U.S. President Donald Trump stated that the U.S. is no longer interested in a deal with Iran. With worries of inflation and global rate hikes returning, expectations among investors about an early reopening of the Strait of Hormuz vanished.

Today, the U.S. Dollar Index DXY, which measures the Greenback against a basket of other major currencies, was last seen trading at 103.18, up by 0.28 (or 0.27%).

While against the Euro, the USD was trading at 1.105, up by 0.31%, against the GBP, the USD was trading at 1.324, up by 0.28%.

Against the USD, the Japanese Yen was trading at 159.852, down by 0.05%, the Swiss Franc was trading at 0.835, down by 0.28%; and the Canadian Dollar was trading at 1.426, down by 0.04%.

Against one unit of Australian Dollar, the USD was trading at 0.681, up by 0.57%.

Expectations of investors on a possible U.S.-Iran agreement that would result in the reopening of the Strait of Hormuz drowned after the sudden reversal of stance by the U.S.

On Sunday, Trump stated that there would not be a need to recommence the attacks on Iran.

Later on Wednesday, Trump remarked that he was seeing a positive momentum in the attempts towards ending the war. Trump also conceded to the request by Arab nations to pause any planned attacks.

Echoing Trump's views, U.S. Secretary of State Marco Rubio also claimed that with the U.S. sanctions on Iran working effectively, there was no need for any combat actions.

Things took a different turn after the Secretary of Iran's Supreme National Security Council Major General Mohsen Rezaei stated that the U.S. is making false claims about negotiations in order to bring down the oil prices in the U.S. and ease the pressure on its own economy.

Rezaei also stressed that Iran will never allow even a single grain of enriched nuclear particle to be moved out.

Yesterday, while speaking at the 2026 National Veterans Day Ceremony at Arlington National Cemetery, Trump stated that the U.S. would want to make sure of a total victory and not an incomplete victory in the Iran war.

Citing people familiar with the negotiations, the Wall Street Journal reported that U.S. Vice President JD Vance is considering to have a face-to-face talk with a top Iranian security official to end the stalemate. The report added that Trump has empowered Vance to hold the talks.

Negating all speculations, through Truth Social, Trump messaged that the days when the U.S. had to wait for a deal with Iran are over and currently, the U.S. does not need any deal with Iran.

Trump claimed that the U.S. has hundreds of billions of dollars of Iran's money and has taken over the control of the Strait of Hormuz.

Supply disruption concerns were renewed and crude oil prices surged sharply. With rate hike worries returning, dollar value moved higher.

In the U.S, the data from the National Association of Realtors showed that existing home sales slumped 5.50% to a seasonally adjusted annual rate of 3.75 million units in October, the lowest level since August 2010 and below market expectations of 3.85 million units.

Data from the U.S. Labor Department showed that for the week ending November 7, the initial claims for unemployment benefits increased by 9,000 to 200,000 from the previous period. The continuing jobless claims decreased to 1,697,000 for the week ending October 31 from 1,717,000 of the previous week.

However, the four-week average remained unchanged at 195.25.

Over the past few days, several senior officials of the U.S. Federal Reserve have been voicing in favor of the need for a rate hike, with some calling for even double hikes.

According to the CME Group's FedWatch Tool, currently investors are betting on a 84.70% chance of a 25-basis-point interest rate hike at the upcoming meeting of the Fed on December 8-9. The odds on a half-point rate hike now stand at 15.30%.

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