U.S. dollar falls to pre-conflict lows on Iran war de-escalation hopes
Updated
Updated · Reuters · May 7
U.S. dollar falls to pre-conflict lows on Iran war de-escalation hopes
11 articles · Updated · Reuters · May 7
On Wednesday it hit its weakest level against the offshore yuan in more than three years, while the DXY index erased its roughly 3% rise from the war's first month.
Markets are weighing whether a war end and Strait of Hormuz reopening would deepen losses by lowering oil prices and reviving expectations of Federal Reserve rate cuts.
Japan's recent dollar-selling intervention and a postponed Trump-Xi summit add pressure, though Wall Street's AI-driven rebound and stronger US profit forecasts could still support the greenback.
Is the dollar's decline a temporary blip, or a major shift as decades of Japanese investment start flowing home?
As Japan's new leader meets Trump, will currency talks prevent a massive sell-off of U.S. government debt?
Can a fragile peace proposal actually reopen the world's most vital oil chokepoint amid deep-seated mistrust?