The dollar retreated against most major currencies on Wednesday after the U.S. signaled it may be nearing a deal with Iran, while the yen continued to drift.<\/p>\n
Ozan Kose | Afp | Getty Images<\/p>\n
The dollar retreated against most major currencies on Wednesday after the U.S. signaled it may be nearing a deal with Iran, while the yen continued to drift weaker toward levels that have previously drawn intervention from Tokyo.<\/p>\n
President Donald Trump said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing\u00a0progress\u00a0toward a comprehensive agreement with Iran.<\/p>\n
That came shortly after U.S. Secretary of State Marco Rubio\u00a0said\u00a0on Tuesday that the United States has achieved its objectives in its military campaign against Iran, and was “not cheering for an additional situation to occur.”<\/p>\n
U.S.\u00a0oil futures fell\u00a0on Wednesday morning by over $2 following Trump’s remarks, with U.S. West Texas Intermediate<\/a>\u00a0softening to near $100 per barrel.<\/p>\n “The signals sent from the United States appear to offer reassurance that it’s not interested in renewing hostilities,” said Kyle Rodda, senior analyst at Capital.com.<\/p>\n However, this isn’t all good news with oil still trapped and the Strait still closed, he added. “That suggests upward pressure on oil will persist, which could cause a headache for the markets once again down the line.”<\/p>\n The euro<\/a> stood at $1.1714\u00a0and sterling<\/a> traded at $1.35685, both up roughly 0.2% so far on the day.<\/p>\n The Australian dollar<\/a> fetched $0.7208, up nearly 0.4% in early trade, and the New Zealand dollar<\/a>\u00a0was up 0.3% at $0.5905.<\/p>\n The dollar index<\/a>\u00a0fell 0.01% to 98.299.<\/p>\n The markets are now gearing up for non-farm payrolls release later this week, which will\u00a0serve as a test\u00a0whether the economy remains resilient enough to keep the Federal Reserve’s<\/a> monetary policy on hold, or whether a softening labour market could revive the case for interest rate cuts.<\/p>\n