DXY Extends Losses Amid Easing Safe-Haven Demand and Hormuz Tensions

The US Dollar Index (DXY) continued its downward trend for the second consecutive day, trading around 99.90 during the Asian session on Wednesday.

This decline in the Greenback's value comes amid growing diplomatic momentum surrounding a potential agreement to reopen the Strait of Hormuz, which has reduced safe-haven demand.

Qatari officials announced an interim proposal for restoring access to the critical maritime transit route, and both Washington and Tehran have signaled progress toward this goal.

The US Dollar may find some support from a recovery in the benchmark 10-year US Treasury yield, which dipped toward 4.61% on Tuesday due to falling energy prices and lower inflation expectations.