U.S. Dollar Inches Lower As Trump Signals Early Reopening Of Strait Of Hormuz

(RTTNews) - The U.S. Dollar value ticked lower with concerns of high interest rate in the U.S. diminishing after oil-linked inflationary pressure receded due to a fall in the crude oil prices following a reassurance by U.S. President Donald Trump that the Strait of Hormuz will reopen soon.

Today, the U.S. Dollar Index DXY which measures the Greenback against a basket of other major currencies was last seen trading at 99.70, down by 0.16 (or 0.16%).

Data from the Institute for Supply Management showed that the Services Purchasing Managers' Index edged up to 54.10 in July from 54.00 in June, slightly below forecasts of 54.50.

The U.S. Automatic Data Processing data revealed that private employers added 44,000 jobs in July, the least in six months, following a downwardly revised 95,000 gain in June and below forecasts of 70,000.

The Mortgage Bankers Association of America revealed that the Purchase Index decreased to 154.00 on July 31 from 159.80 of the previous week.

While against the Euro, the USD was trading at 1.155, down by 0.18%, against the GBP, the USD was trading at 1.346, down by 0.11%.

Against the USD, the Japanese Yen was trading at 157.755, down by 0.04%, the Swiss Franc was trading at 0.807, up by 0.21%; and the Canadian Dollar was trading at 1.401, up by 0.36%.

Against one unit of Australian Dollar, the USD was trading at 0.706, down by 0.16%.

The U.S.-Iran crisis is showing signs of coming to an end sooner-than-expected.

Speaking to to Fox News, Trump stated that the talks have been moving very nicely and commented that all-day negotiations happened on Tuesday.

Trump assured that the Strait of Hormuz will reopen very soon. He warned that if a deal is not reached, the U.S. would embark on strong military action against Iran, otherwise.

While expressing optimism on securing a deal, Trump also kept tensions alive when he threatened that if Iran backs out again, it will be hit hard and stressed again that Iran cannot have a nuclear weapon.

Keeping up the expectations, Trump preferred to wait and see how things pan out.

Trump speculated further decline to crude oil and energy prices if the Strait of Hormuz is opened up fully.

After Trump ordered U.S. forces to halt his earlier planned massive strikes on Iran on Friday to give diplomacy a chance, crude oil prices dwindled.

Axios reported that the U.S., Iran, and Oman are closing in on an interim 60-day agreement t to reopen the strait.

During that 60-day period, no tolls or fees would be charged for any ships. All inbound traffic would go through Iranian waters, and all outbound traffic would go through Omani waters. The parties would clear all naval mines laid by Iran in 30 days.

Currently, investors are betting on a 54.90% chance of a 25-basis-point interest rate-hike in the upcoming meeting of the U.S. Federal Reserve on September 15-16 while the odds on rates being held at the current level stand at 45.10%, according to the CME Group's FedWatch Tool.