U.S. dollar sheds bulk of Iran war premium, but few expect a sharper drop

The U.S. dollar has given back most of the gains it made during the Iran war as a tentative ceasefire lifted demand for riskier currencies. However, the dollar is expected to be supported by strong U.S. asset demand and fading expectations for Fed rate cuts, limiting the risk of a sharper decline.

Analysis

The U.S. dollar has given back most of the gains it made during the Iran war as a tentative ceasefire lifted demand for riskier currencies. However, the dollar is expected to be supported by strong U.S. asset demand and fading expectations for Fed rate cuts, limiting the risk of a sharper decline.