Dollar sheds bulk of Iran war premium, but few expect a sharper drop

The U.S. dollar has given back most of the gains triggered by the Iran war after a tentative ceasefire revived demand for riskier currencies. Investors still see support from robust demand for U.S. assets and fading expectations for near-term U.S. rate cuts, which could limit further dollar downside.

Analysis

The U.S. dollar has given back most of the gains triggered by the Iran war after a tentative ceasefire revived demand for riskier currencies. Investors still see support from robust demand for U.S. assets and fading expectations for near-term U.S. rate cuts, which could limit further dollar downside.