Forex News: U.S. Dollar Ticks Lower As US-Iran Efforts For

U.S. Dollar Ticks Lower As US-Iran Efforts For Peace Negotiations Gather Steam

(RTTNews) - The U.S. Dollar value slipped as indications for ending the U.S.-Iran conflict through negotiations appear prospective. U.S. President Donald Trump expressed optimism that the conflict is in the final stage, and a deal could be reached soon.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 99.14, down by 0.16 (or 0.16%) today.

According to the Mortgage Bankers Association of America, the MBA Purchase Index decreased to 170.40 in May 15 from 177.70 in the previous week.

Against the Euro, USD was trading at 1.162, down by 0.19%.

Against the GBP, USD was trading at 1.344, down by 0.32%. According to the Office for National Statistics, the annual inflation rate in the U.K. slowed to 2.80% in April from 3.30% in March, below market expectations of 3.00%. The consumer prices rose 0.70% month-on-month in April, below market expectations of a 0.90% increase.

While annual core inflation rate eased to 2.50% in April, on a month-on-month basis, it increased to 0.70% in April from 0.40% in March.

Against the USD, the Japanese Yen was trading at 158.899, up by 0.11%; the Swiss Franc was trading at 0.787, up by 0.23%; and the Canadian Dollar was trading at 1.374, up by 0.02%.

Against one unit of Australian Dollar, USD was trading at 0.715, down by 0.68%.

As the war between the U.S.-Israeli forces against Iran entered day number 82 today, expectations of a peaceful settlement have increased.

On Sunday, U.S. President Donald Trump announced that he had paused a planned attack on Iran at the request of several leaders from Arab nations.

Trump also stated that an acceptable solution could be reached soon but emphasized that any deal should deprive Iran's powers to build nuclear weapons.

Later, Trump stated that he was just an hour away before halting the attacks and observed that the U.S. has given only a limited period of time to Iran, roughly until early next week, to come up with a deal.

Today, Trump remarked that he is expecting the war to end quickly and added that the conflict is in the final stages.

U.S. Vice President JD Vance stated that negotiations between both the nations are progressing well.

Pakistan's Interior Minister Syed Mohsin Naqvi is in Iran, visiting the country second time in less than a week. Positioning itself as a key mediator, Pakistan is brokering peace between the U.S. and Iran.

Iran's Islamic Republic News Agency (IRNA) stated that Naqvi met his Iranian counterpart and discussed matters relating to regional security and mutual interest.

Currently, Iran is reviewing a proposal sent by the U.S.

As diplomatic efforts to reach an agreement between the U.S. and Iran gain momentum, crude oil prices plummeted. With inflationary pressures lowering, US Dollar Index inched lower.

Minutes from April month's meeting of the U.S. Federal Reserve released today revealed that a majority of Fed officials expected that interest rate increases would be necessary if the U.S.-Iran war continued to aggravate inflation. In April, the Federal Open Market Committee kept the benchmark rate in thet 3.50% to 3.75% range.

Trump will swear in the new Chair for the U.S. Federal Reserve, Kevin Warsh, who succeeds Jerome Powell on Friday.

While Trump is a proponent of a lower interest rate regime, elevated levels of inflation due to rising oil prices discourages any monetary easing and Warsh's moves will be keenly watched by economists.

Minutes from the Federal Open Market Committee's April meeting relased today revealed that a majority of Fed officials were of the view that interest rate increases would become necessary if the Iran war continued to aggravate inflation.

According to the CME Group's FedWatch Tool, investors are betting only at a slim 3.20% chance for a quarter-point interest rate cut in the Federal Reserve's upcoming meeting on June 16-17.

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