Forex News: U.S. Dollar Advances As U.S.-Iran Standoff Continues While

U.S. Dollar Advances As U.S.-Iran Standoff Continues While Mediators Push For Truce

(RTTNews) - The U.S. Dollar value inched higher on Tuesday, extending the gains from four consecutive sessions amid concerns about persistent inflation due to intense U.S. attacks on Iran for the tenth day despite signals of a possible truce showing up through Pakistani mediation.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 101.18, down by 0.23 (or 0.23%) today.

In the U.S., private employers added an average of 16,500 jobs per week over the four weeks ending July 4, according to data from the Automatic Data Processing Research Institute. This is down from an average weekly gain of 19,250 in the previous four-week period, marking fourth consecutive slowdown in hiring.

While against the Euro, the USD was trading at 1.140, up by 0.14%, against the GBP, the USD was trading at 1.338, up by 0.40%.

Against the USD, the Japanese Yen was trading at 163.198, down by 0.44%, the Swiss Franc was trading at 0.813, down by 0.45%; and the Canadian Dollar was trading at 1.410, down by 0.27%.

Against one unit of Australian Dollar, the USD was trading at 0.700, unchanged.

In the ongoing renewed U.S.-Iran conflict, U.S. military announced that it hit Iranian military command centers, missile and drone launch sites, maritime capabilities, and air defense systems aiming to degrade Iran's resources to continue attacking commercial vessels flowing through the Strait of Hormuz. The extensive attacks lasted for about five hours.

Shipping traffic across the Strait of Hormuz decreased considerably over the past week, leading to a sharp increase in crude oil prices.

Meanwhile, following yesterday's reports that Iran is considering a proposal from mediators for a 10-day ceasefire, Iran's Interior Minister Eskandar Momeni arrived in Pakistan today.

Momeni met Pakistan's Army Chief, Field Marshal Asim Munir and held closed-door negotiations. Later, Momeni had consultations with Pakistan's Prime Minister Shehbaz Sharif.

Amid soaring gasoline prices in the U.S. and global oil-linked inflation that is keeping the world economies on the edge, experts are of the view that both the U.S. and Iran would soon give away their aggressive postures and come to negotiating table to find ways for resolving their disagreements.

Recently, the new U.S. Federal Reserve Chair Kevin Warsh appeared before the House Financial Services Committee and the Senate Banking Committee to deliver his first semi-annual testimony. In the two days of hearing, Warsh stressed on the need for aligning capital rules with domestic growth.

The policymakers of the U.S. Federal Reserve have entered their customary blackout period ahead of next week's meeting of the Federal Open Market Committee.

Currently, investors are betting on a 24.10% chance of a quarter-basis-point interest rate hike in the upcoming meeting of the U.S. Federal Reserve on July 28-29 meeting while the odds on rates being held at the current level stand at 75.90%, according to the CME Group's FedWatch Tool.

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