US Dollar Weakens on Easing Risk Aversion and Iran-Oman Shipping Deal

The US Dollar (USD) has weakened due to reduced safe-haven demand, causing the USD/CHF pair to decline for the third consecutive day.

Market sentiment shifted following reports that Iran and Oman have reached an agreement on a shipping route through the Strait of Hormuz, boosting expectations for increased Middle Eastern energy flows.

Strategists at Scotiabank observe that recent US employment releases continue to point to a labour market that is 'tight but not necessarily adding to inflation pressure at the moment', which they describe as 'a mild negative for the USD perhaps'.