2026.04.2412:07:24UTC+00Dollar Weakens Slightly, Still Set for Weekly Gain

The dollar index slipped below 98.6 on Friday, reversing earlier gains, as traders remained focused on geopolitical developments in the Middle East. Al Jazeera, citing government sources, reported a “high likelihood of a breakthrough” in US–Iran talks in Islamabad, with a delegation headed by Iran’s foreign minister expected to arrive in the Pakistani capital tonight. Separately, US President Trump announced a three-week extension of the Lebanon ceasefire, which had been set to expire on Sunday.

Despite Friday’s retreat, the greenback is up about 0.7% for the week—its first weekly advance in three weeks. The ongoing deadlock in US–Iran negotiations and the near-closure of the Strait of Hormuz continue to prop up oil prices and intensify inflationary pressures, prompting traders to reassess the interest rate outlook. The Federal Reserve is widely expected to leave the federal funds rate unchanged at next week’s meeting, with no additional rate moves projected for the remainder of the year.