Dollar's Upsurge Falters as Iran Signals Strait of Hormuz Reopening
The EUR/USD pair is largely unchanged on Tuesday as the US Dollar gives back earlier gains following fresh diplomatic signals surrounding the war between the United States and Iran.
The Greenback loses momentum while Oil prices also fall after Iran said it could reopen the Strait of Hormuz within seven days if Washington eases military pressure and lifts its blockade of Iranian ports. The US Dollar Index (DXY) trades around 100.40, down from its highest level since late July earlier in the day.
Despite this, the US Dollar's downside could remain limited as the Federal Reserve keeps the door open to additional tightening. Boston Fed President Susan Collins said that 'the upside risks to inflation have increased,' while labor market conditions appear 'a bit stronger overall.'