US Dollar weakens due to Israel-Iran ceasefire boosting risk appetite

From Investing.com: 2025-06-24 05:42:00

An Israel-Iran ceasefire has been agreed after 12 days of hostilities, following US intervention and Iranian retaliation. Uncertainty remains over whether both sides will respect the agreement, and questions arise over the damage to Iranian nuclear facilities and Russia’s role in the ceasefire. Markets react positively to the news, with US stock indices climbing, and in the green, while oil and gold prices drop.
Focus shifts to tariffs and the Fed, as the dollar weakens and Fed doves push for a rate cut. Trump’s lack of progress on trade agreements adds to the uncertainty. Fed Chair Powell’s testimony today will be closely watched for insights into the Fed’s monetary policy direction amid growing internal rifts.



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