US dollar fell to its lowest level since the beginning of the war in the Middle East after reports that the United States and Iran are moving closer to an agreement.
Bloomberg network reported that the dollar index dropped by as much as 0.8%, reaching its lowest level since February 26, after Axios quoted the White House as believing it is close to reaching an agreement with Iran on a one-page memorandum of understanding and establishing a framework for more detailed nuclear negotiations later.
The dollar weakened against most major currencies following the report, while US stock futures rose and oil prices declined.
US currency also came under additional pressure after a sharp rally in the Japanese yen.
Analysts said the latest developments mark a significant shift in market expectations, noting that investors are increasingly scaling back previously priced extreme risk scenarios amid improving risk sentiment.
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