U.S. Dollar Slips Amid Improving Prospects Of A U.S.-Iran Peace Deal

(RTTNews) - The U.S. Dollar value ticked lower amid optimism on an early reopening of the Strait of Hormuz and increasing chances of a U.S.-Iran deal though U.S. President Donald Trump laid out strong demands for an agreement.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 98.92, down by 0.07 (or 0.07%) today.

The Institute for Supply Management's Chicago Business Barometer for the month of May surged to 62.70 from 49.20 of the previous month, highest in over four years.

Yesterday, the crucial core Personal Consumption Expenditures index revealed a rise by 0.20% in April following a 0.30% increase in March. On a year-on-year basis, the PCE rose by an expected 3.30%.

Against the Euro, USD was trading at 1.167, down by 0.09%. In Germany, unexpectedly, the unemployment change for the month of May fell by 12,000, against expectations of a 10,000 increase.

Against the GBP, USD was trading at 1.346, down by 0.12%.

Against the USD, the Japanese Yen was trading at 159.267, down by 0.02%. In Japan, the unemployment rate fell to 2.50% in April, according to Ministry of Internal Affairs and Communications. According to Statistics Bureau of Japan, the core consumer prices in Tokyo's central wards rose 1.30% year on year in May while the CPI decreased to 1.40% in May from 1.50% in April.

Against the USD, the Canadian Dollar was trading at 1.379, down by 0.09%. The data released by Statistics Canada revealed that the Gross Domestic Product in Canada decreased at an annualized 0.10% rate. On a month-on-month basis, the economy expanded 0.40%, recovering from a 0.10% drop in March. However, on a quarterly basis, for Q1 2026, GDP maintained the 0.20% contraction from the previous quarter. Experts are dissecting the numbers as it points out that the economy is technically in a recession.

Compared to the USD, the Swiss Franc was trading at 0.781, up by 0.36%.

Against one unit of Australian Dollar, USD was trading at 0.718, down by 0.31%.

Yesterday, Axios reported that a Memorandum of Understanding between the U.S. and Iran has been prepared awaiting U.S. President Donald Trump's final approval.

Today through Truth Social, Trump acknowledged that key elements still remain to be worked out but conceded that negotiations have advanced on lesser issues.

Trump insisted that Iran must not develop or possess a nuclear bomb and repeated his call for unearthing enriched uranium material buried deep underground in Iran to be moved outside of Iran and destroyed with the assistance from the U.S., Iran, and the International Atomic Energy Agency.

Trump wanted the immediate reopening of the Strait of Hormuz with no restrictions on shipping traffic and no tolls levied, and emphasized that Iran should remove or detonate all the sea mines it had planted earlier.

Once Iran complies with the U.S. demands, Trump assured to lift the U.S. naval blockade on Iranian ports.

Trump is set to take a final call after a meeting in the Situation Room of the White House today.

Market sentiments received a boost after this announcement with expectations of an early reopening of the Strait of Hormuz and resumption of oil and energy transit increasing.

Consequently, with inflationary pressures off the table, U.S. Dollar value moved lower today.