Forex News: U.S. Dollar Ticks Lower Amid U.S.-Iran Peace Talk

U.S. Dollar Ticks Lower Amid U.S.-Iran Peace Talk Prospects

(RTTNews) - The U.S. Dollar value inched lower on Friday as optimism on a resolution to the U.S.-Iran crisis increased after Iran readies for next round of peace talks with the U.S.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 98.51, up by 0.31 (or 0.31%) today.

The University of Michigan's consumer sentiment index was revised up to 49.80 in April from an initial estimate of 47.60, according to final data.

Against the Euro, USD was trading at 1.172, down by 0.30%.

Against the GBP, USD was trading at 1.353, down by 0.48%. Office for National Statistics data revealed that retail sales volumes rose 0.70% month-on-month in March, rebounding from a revised 0.60% drop in February and exceeding expectations of a 0.20% rise. Retail sales volumes rose 1.70% year-on-year in March, mildly easing from a 1.80% increase in February.

Against the USD, the Japanese Yen was trading at 159.408, up by 0.15%. Annual inflation rose to 1.50% in March 2026 from February's near four-year low of 1.30%, according to the Ministry of Internal Affairs and Communications. The Consumer Price Index increased 0.40% in March over the previous month. The core consumer price index (excluding fresh food) but including energy, rose 1.80% year-on-year in March.

The Swiss Franc was trading at 0.784, up by 0.18%; and the Canadian Dollar was trading at 1.366, up by 0.22%.

Against one unit of Australian Dollar, USD was trading at 0.715, down by 0.32%.

The U.S-Iran conflict which began on February 28 resulted in a near-complete closure of the Strait of Hormuz, leading to a surge in oil prices.

Investors were becoming restless about the status of the Strait of Hormuz reopening as the U.S. and Iran separately claimed having taken control of the waterway.

With shipping traffic across the channel virtually coming to a halt, the head of the International Energy Agency Fatih Birol observed that the world is losing 13 million barrels per day of oil since the war erupted and warned that the world could face the largest energy crisis in history if the standoff continues. Inflationary pressures pushed the U.S. Dollar price on the higher side.

Tensions lowered after Reuters reported that Iran's Foreign Minister Abbas Araghchi is scheduling a trip to Pakistan, possibly to discuss about the next round of peace talks with the U.S.

IRNA, the state-run news outlet of Iran also confirmed that Iran's Foreign Minister Abbas Araghchi will travel to Pakistan, and then Oman and Russia, starting Friday evening.

Araghchi is expected to convey high-level officials in Pakistan about Iran's expectations from the U.S.

On the social media platform, X, Araghchi mentioned that his trip is focused on bilateral matters and regional developments, without elaborating on the U.S. calls for peace talks.

Meanwhile, CNN reported that U.S. Special Envoy Steve Witkoff and Trump's son-in-law Jared Kushner will likely represent the U.S.

Market participants are watching these developments with "cautious optimism" as U.S. military has assembled a total of three aircraft carrier vessels near Iran, keeping the chances for military offensive alive.

The U.S. Federal Reserve is slated to meet on April 28 and 29 for its monetary policy discussion.

Economists have dissociated themselves from any rate-cut expectations until the Middle East crisis shows signals of resolution.

According to the CME Group's FedWatch Tool, investors are still betting at a 99.50% chance that the U.S. Federal Reserve will hold the interest rates unchanged in its upcoming meeting on April 28-29.

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