US dollar eases after Iran‑Israel ceasefire report

The U.S. dollar fell on Tuesday, retreating from a two-month high as a reported halt in hostilities between Iran and Israel shifted investor focus toward geopolitical de-escalation and away from expectations of higher U.S. interest rates.

The U.S. Dollar Index, which measures the currency against a basket of peers, was down 0.24 percent at 99.77. The decline followed an announcement on Monday that Iran and Israel had halted direct attacks on each other after an appeal from U.S. President Donald Trump. Iranian officials warned, however, that hostilities would resume if Israel continued strikes against Hezbollah in Lebanon. Israeli Prime Minister Benjamin Netanyahu stated that the war "has not yet ended."

Market analysts noted that the U.S. dollar often strengthens as a safe-haven asset during periods of conflict, with investors selling the euro and yen. Conversely, signs of potential peace, which could ease oil prices, tend to weaken the dollar against those currencies. The immediate market reaction reflected a recalibration of risk appetite, with capital flowing toward higher-yielding assets.

This shift temporarily overshadowed strong U.S. economic data that had recently...