Dollar Weakens Below 100.00 Amid Optimism Over US-Iran Talks
The US Dollar Index (DXY) has weakened below 100.00 as traders react to President Donald Trump's announcement that new Iran talks would begin on Monday.
Trump stated that he had called off an attack on Iran and that negotiations between the two sides would take place on Monday, with a possible agreement on reopening the Strait of Hormuz in sight.
Hopes for a breakthrough in the US-Iran standoff have lifted risk sentiment, causing the DXY to decline amid improving market conditions.
Analysts at Commerzbank believe that once tensions with Iran subside, the Dollar will come under renewed pressure due to fading expectations of a US rate hike in September.