Forex News: U.S. Dollar Slips As War Concerns Linger Despite

U.S. Dollar Slips As War Concerns Linger Despite Trump's Reassurances

(RTTNews) - The U.S. Dollar value ticked lower as investors weighed reports stating that Iran is preparing for a full-scale war with Israel amid reassurances from U.S. President Donald Trump that U.S.-Iran negotiations are proceeding well.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 100.01, down by 0.05 (or 0.05%) today.

While against the Euro, USD was trading at 1.153, down by 0.09%, against the GBP, it was trading at 1.334, down by 0.09%.

Against the USD, the Japanese Yen was trading at 160.185, up by 0.06%.

Japan's economy expanded at a slower pace than initially estimated in Q1 2026. The Gross Domestic Product logged an annualized growth of 1.80% in this period.

On a quarterly basis, the economy expanded 0.5 percent in the first quarter, in line with the preliminary estimate.

Against the USD, the Swiss Franc was trading at 0.797, down by 0.31%; and the Canadian Dollar was trading at 1.395, down by 0.12%.

Against one unit of Australian Dollar, USD was trading at 0.704, down by 0.10%.

The U.S.-Israel war against Iran entered day number 101 today.

Over the past couple of weeks, U.S. and Iran held several rounds of talks.

The prospect of an imminent deal increased following reassuring messages from Trump.

Last Wednesday, Israel and Lebanon agreed to a ceasefire.

The prospects of an end to U.S.-Iran and Israel-Lebanon conflicts gave a boost to market sentiments.

However, on Sunday, in response to Israeli military assaults in southern Lebanon, Iran carried out a series of nearly 11 missile attacks in northern Israel.

Shortly after Iran's attack, talking to Fox News and in an interview with Channel 12, Trump stated that he will talk to Israeli Prime Minister Benjamin Netanyahu and ask him not to hit back.

Trump stated that the U.S. was on the verge of closing a deal with Iran which he did not want to be disrupted due to a renewed Israel-Iran military offensive.

However, the Israeli Air Force announced conducting strikes in western and central Iran.

Citing U.S. and Israeli officials, Axios reported that Trump had urged Netanyahu not to retaliate further.

Trump demanded that both Israel and Iran should immediately stop shooting each other.

Later, Reuters reported quoting Channel 12 that Israel paused its attacks on Iran at Trump's request.

Iran signaled ending its military operations in Israel.

In a Truth Social post, Trump stated that Israel and Iran agreed to a ceasefire. He added that U.S.-Iran negotiations are underway and stated that he expected things to move quickly.

In an interview with CNN, Lebanese President Joseph Aoun urged Israel to choose dialogue over military action.

Meanwhile, citing a military source, Iran's Tasnim News Agency reported that Iran has made full preparations for a prolonged war with Israel.

The source confirmed that sufficient and necessary measures for such a scenario have been already put in place.

The news has renewed concerns of re-escalation in the Middle East.

According to the CME Group's FedWatch Tool, investors are betting at a 98.00% chance that the U.S. Federal Reserve will hold the interest rates at the current level in its upcoming meeting on June 16-17.

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