{"id":12442,"date":"2026-03-10T10:53:07","date_gmt":"2026-03-10T10:53:07","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/12442\/"},"modified":"2026-03-10T10:53:07","modified_gmt":"2026-03-10T10:53:07","slug":"dollar-rally-stalls-on-hopes-of-an-easing-in-iran-war-but-wariness-reigns","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/12442\/","title":{"rendered":"Dollar rally stalls on hopes of an easing in Iran war, but wariness reigns"},"content":{"rendered":"

The euro slid, while the franc and dollar rose on Monday as investors headed for safety after the U.S. and Israel bombed Iran.<\/p>\n

Priscila Zambotto | Moment | Getty Images<\/p>\n

The\u00a0dollar\u00a0took a breather on \u2060Tuesday as investors swung between hopes for a de-escalation in the\u00a0U.S.-Israeli war on\u00a0Iran\u00a0and concerns that any such optimism could be \u200bpremature.<\/p>\n

U.S.\u00a0President\u00a0Donald Trump\u00a0said \u200bthe war could end well before \u200bthe timeline he initially laid out, but threatened to escalate attacks should\u00a0Tehran\u00a0block oil shipments from the\u00a0Strait of Hormuz.<\/p>\n

In response,\u00a0Iran’s\u00a0Revolutionary Guards dismissed Trump’s remarks as “nonsense” and said the blockade would continue until attacks from the\u00a0U.S.\u00a0and \u2060Israel \u200cend.<\/p>\n

However, equities advanced and oil prices retreated from over three-year highs, \u2060underscoring how eager investors were to seize on any hint of good news.<\/p>\n

The safe-haven\u00a0dollar\u00a0weakened 0.1% to\u00a0$1.1652\u00a0against the euro and 0.1% to\u00a0157.49 yen. The\u00a0dollar\u00a0index, which measures the greenback against a basket of six peers, fell 0.3% to a one-week low of \u200c98.6.<\/p>\n

“What will matter most is a reopening of the\u00a0Strait of Hormuz\u00a0and a restart of production across the\u00a0Middle East. Until investors receive headlines on that score, we doubt the \u200bdollar\u00a0is going to quickly hand back all the gains made over the last two weeks,” said\u00a0ING’s\u00a0global head of markets\u00a0Chris Turner.<\/p>\n

Volatility expected to persist<\/p>\n

Rodrigo Catril, senior currency strategist at\u00a0National Australia Bank\u00a0in\u00a0Sydney, said there was still good reason to be cautious.<\/p>\n

It “may not be as simple \u2060as just declaring the end of the war … and it’s unclear to us whether the Iranian regime would be interested in de-escalating,” \u200che said.<\/p>\n

The\u00a0dollar\u00a0has been traders’ shelter-of-choice, given that the\u00a0U.S.\u00a0as a \u200cmajor oil producer is better positioned to withstand energy price shocks compared to other geographies that rely on imports.<\/p>\n

“Higher prices result in higher income for\u00a0U.S.\u00a0oil producers and exporters, and the increase in prices will also likely arrest the depreciation of the \u2060dollar\u00a0that has been ongoing since Liberation Day,” said Jefferies’ chief\u00a0U.S.\u00a0economist\u00a0Thomas Simons.<\/p>\n

Investors are worried that \u2060a sustained spike in fuel prices could curtail global growth by acting as a \u2060tax on business and consumption, while at the same time pushing central banks away from easing rates.<\/p>\n

A Deutsche Bank analysis on Monday suggested larger market moves out of risky assets would \u200bonly happen if oil prices were to stay at higher \u200clevels and there was a policy pivot from central banks, alongside tangible signs of a broader economic slowdown.<\/p>\n

“How close are we to meeting those thresholds? Much closer than a week ago,” said strategist\u00a0Henry Allen.<\/p>\n

“But on several metrics we aren’t quite there yet, which explains why equities aren’t yet seeing bear-market declines, like we saw in 2022,” he said, referring to the aftermath \u200bof an energy shock triggered by\u00a0Russia’s\u00a0invasion \u200cof\u00a0Ukraine.<\/p>\n

Sterling recovered from a Monday dip to trade 0.2% higher at\u00a0$1.3471.<\/p>\n

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The euro slid, while the franc and dollar rose on Monday as investors headed for safety after the…\n","protected":false},"author":2,"featured_media":12443,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[157,135,3446,6901,38,3454,2077,108,2433,34,6900,110,207,51,109],"class_list":{"0":"post-12442","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-iran","8":"tag-breaking-news-markets","9":"tag-business-news","10":"tag-currency-markets","11":"tag-deutsche-bank-ag","12":"tag-donald-trump","13":"tag-forex-markets","14":"tag-ing-groep-nv","15":"tag-invesco-db-oil-fund","16":"tag-invesco-db-us-dollar-index-bullish-fund","17":"tag-iran","18":"tag-jefferies-financial-group-inc","19":"tag-lp","20":"tag-markets","21":"tag-united-states","22":"tag-united-states-oil-fund"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/116204509870913075","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/12442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=12442"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/12442\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/12443"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=12442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=12442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=12442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}