17.04.202602:00:41UTC+00Dollar Heads for Third Weekly Loss

The dollar index held above 98 on Friday but remained on course for a third straight weekly decline, as improving prospects for a resolution to the US-Iran conflict reduced safe-haven demand and eased energy-driven inflation concerns. In the latest developments, President Donald Trump voiced confidence that the conflict with Iran would be resolved soon, asserting that Tehran had accepted terms that included abandoning its nuclear ambitions and reopening the Strait of Hormuz. Trump also announced a 10-day ceasefire between Israel and Lebanon, a move that could create additional room for US-Iran diplomacy. Meanwhile, oil prices continued to fall, helping to moderate inflation expectations and diminishing market expectations that the Federal Reserve will need to tighten policy. New York Fed President John Williams noted that elevated uncertainty should constrain the use of forward guidance on the policy outlook, though his baseline scenario still envisions interest rate cuts over the longer term.