The U.S. Dollar Index declined during Tuesday’s trading, following U.S. President Donald Trump’s announcement of a ceasefire between Iran and Israel, which improved investor sentiment and boosted risk appetite.
The Dollar Index — which measures the performance of the greenback against a basket of six major currencies — fell by 0.35% to 98.07 points at 1:29 p.m. Mecca time.
The euro rose by 0.2% to $1.1597, the British pound gained 0.65% to $1.3608, while the U.S. dollar weakened against the Japanese yen by 0.75% to ¥145.02.
Trump announced via a post on Truth Social that a ceasefire agreement between Israel and Iran had come into effect, urging both countries to honor the deal and marking the end of a 12-day conflict.
Adding further pressure on the dollar were comments by Federal Reserve Governor Michelle Bowman, who expressed her willingness to support a rate cut at the July meeting, provided inflationary pressures remain subdued.
Investors are now closely watching Fed Chair Jerome Powell’s testimony before Congress today and tomorrow, with attention focused on his outlook for interest rates amid easing geopolitical tensions and developments in growth and inflation
