Forex News: U.S. Dollar Dips Amid Easing Inflation Concerns Following

U.S. Dollar Dips Amid Easing Inflation Concerns Following Reports Of A Possible U.S.-Iran Deal

(RTTNews) - The U.S. Dollar value edged lower on Tuesday after a report indicated that Pakistan and Qatar have presented a proposal to end the U.S.-Iran conflict for which both sides have offered their preliminary approval.

Today, the U.S. Dollar Index DXY, which measures the Greenback against a basket of other major currencies, was last seen trading at 101.71, down by 0.27 (or 0.26%).

While against the Euro, the USD was trading at 1.123, down by 0.21%, against the GBP, the USD was trading at 1.338, down by 0.56%.

Against the USD, the Japanese Yen was trading at 158.185, up by 0.19%, the Swiss Franc was trading at 0.825, up by 0.22%; and the Canadian Dollar was trading at 1.406, up by 0.37%.

Against one unit of Australian Dollar, the USD was trading at 0.700, down by 0.35%.

According to the U.S. Census Bureau, on a month-on-month basis, the U.S. housing starts fell 5.20% to a seasonally adjusted annual rate of 1.221 million in September 2026, marking a third consecutive monthly decline.

The U.S. building permits decreased 0.20% month-over-month to 1.400 million units in September.

The U.S. Automatic Data Processing data revealed that private sector jobs decreased to 18,500 on October 3 from 24,750 of the previous week.

Yesterday, U.S. President Donald Trump reiterated that the U.S. is winning the conflict with Iran.

Trump remarked that the U.S. forces can exit the Middle East even right now, hinting that the strikes on Iran to prohibit the nation from acquiring any nuclear weapon has succeeded.

According to CNBC, not less than 18 vessels have been targeted in the Strait of Hormuz during the last fortnight.

Citing Islamic Revolutionary Guards Corps, Iran's Fars news agency reported that two tankers hit mines in the Strait of Hormuz and caught fire.

Qatar's Foreign Ministry Spokesperson Majed al-Ansari stated that negotiations between the U.S. and Iran through mediators have not stopped.

In a significant development, citing sources, Al-Araby Al-Jadeed news agency reported that negotiators from Qatar and Pakistan have presented a compromise proposal to end the U.S.-Iran war.

According to the report, Iran has agreed to allow a visit by the International Atomic Energy Agency to inspect Iran's nuclear sites.

Of note, neither the U.S. nor Iran have confirmed the report officially until now.

However, since any de-escalation in the Middle East takes away the risk premium associated with the Strait of Hormuz oil supply, crude oil prices edged lower, bringing down inflation-related concerns.

However, the conflict between the Iran-backed Houthi militants of Yemen and Saudi Arabia is showing no sign of a let-up.

With U.K. stating that it will deploy fighter jets to protect Saudi Arabia from Houthi attacks and Egypt offering support to Saudi Arabia to protect its security, the threat of an expansive conflict continues to concern investors.

WTI crude oil for November delivery was last seen trading at $101.09, down by $2.57 (or 2.48%).

According to the CME Group's FedWatch Tool, investors are betting on 82.80% chances of the U.S. Federal Reserve to maintain the rates at the current 3.75%-4.00% level with 17.20% odds placed on a quarter-point rate hike in the upcoming Fed's meeting on October 27-28.

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