Forex News: U.S. Dollar Advances As Strait Of Hormuz Continues

U.S. Dollar Advances As Strait Of Hormuz Continues To Remain Shut

(RTTNews) - The U.S. Dollar value edged higher as reopening of Strait of Hormuz delays after Iran announced pausing negotiations with the U.S. to protest against Israeli attacks on Lebanon. Tension eased a little following U.S. President Donald Trump's assurance that negotiations are continuing at a rapid pace.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 99.18, up by 0.28 (or 0.28%) today.

While against the Euro, USD was trading at 1.163, up by 0.22%, against the GBP, it was trading at 1.346, down by 0.08%.

Against the USD, the Japanese Yen was trading at 159.668, down by 0.28% and the Swiss Franc was trading at 0.787, down by 0.81%.

Against the USD, the Canadian Dollar was trading at 1.384, down by 0.38%. Data released by S&P Global revealed that Canada's Manufacturing Purchasing Managers' Index stayed at 52.90 in May, slightly down from 53.30 in April.

Against one unit of Australian Dollar, USD was trading at 0.716, up by 0.27%.

The U.S.-Israel versus Iran war entered day number 94 today.

Last week, Axios reported that a Memorandum of Understanding between the U.S. and Iran had been finalized and awaited the approval of U.S. President Donald Trump.

According to the report, the MoU has provisions to extend the current ceasefire (announced early in April) for another 60 days to allow extensive negotiations on Iran's nuclear program.

In addition, Iran would immediately clear the sea mines it had planted earlier and reopen the Strait of Hormuz.

On Friday, Trump announced that he would make a final call after discussing with his senior aides in the White House Situation Room though no big announcement came after the meeting.

Today, citing inside sources, CBS News reported that Trump had made some significant edits to the MoU.

The amends revolved around the Strait of Hormuz and the removal of highly enriched uranium from Iran.

Through his social media platform, Trump messaged that Iran wants to make a deal which will be a good one for the U.S.

Through another message, Trump reiterated that according to the deal U.S. is negotiating, Iran will not have a nuclear weapon.

Today, U.S. Central Command announced that U.S. forces based in Kuwait intercepted two ballistic Iranian missiles.

In the Middle East, Israel expanded its attacks deep inside south Lebanon.

Iran's Tasnim news agency stated that Iran has halted exchange of messages with the U.S., as a mark of protest against Israel's continuous violation of the ceasefire brokered by the U.S.

However, Axios reported quoting Lebanon's parliament speaker Nabih Berri's top adviser Ali Hamdan as stating that Hezbollah is ready for a full and immediate ceasefire.

To clarify where things stand, Trump messaged that talks with Iran are continuing at a rapid pace and added that he had a telephonic call with Israeli PM Benjamin Netanyahu as well as Lebanon's Hezbollah group and confirmed that both sides have agreed to stop mutual attacks.

Amid these developments, the Strait of Hormuz continues to remain shut, pushing crude oil prices steeply higher day by day.

The consequent inflationary pressures lifted U.S. Dollar value.

In the U.S., the S&P Global Manufacturing Purchasing Managers' Index climbed to 55.10 in May, up from 54.50 in April, slightly below the preliminary estimate of 55.30.

The Institute for Supply Management's Manufacturing PMI rose to 54.00 in May from 52.70 in each of the previous two months, beating forecasts of 53.00.

According to the CME Group's FedWatch Tool, investors are betting at a slender 1.60% chance of a quarter-point interest rate cut in the Federal Reserve's upcoming meeting on June 16-17.

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