Dollar Struggles as US-Iran Negotiations Stall
The US dollar fluctuated on Monday as investors remained cautious due to ongoing uncertainty surrounding the Middle East conflict.
Hopes for a potential deal to end the war have fluctuated, leaving markets without clear direction ahead of a busy week of central bank meetings, The Caspian Post reports, citing foreign media.
US President Donald Trump cancelled a planned visit to Islamabad by his envoys over the weekend.
He said Iran could initiate talks if it wished to negotiate an end to the ongoing two-month conflict.
The development left the strategically important Strait of Hormuz effectively closed, heightening concerns over global trade flows.
Mixed Signals From Diplomatic Efforts
Sentiment improved slightly after Axios reported that Iran had put forward a fresh proposal to the United States through Pakistani mediators.
The proposal reportedly includes reopening the Strait of Hormuz and ending the conflict, while postponing nuclear negotiations to a later stage.
Currency markets reflected this uncertainty.
The euro recovered earlier losses to trade flat at $1.1726, while the British pound edged down slightly to $1.3544.
The dollar index, which tracks the US currency against six major peers, slipped 0.18% to 98.465.
The dollar had previously gained in March on safe-haven demand when the conflict escalated.
However, it has since surrendered most of those gains amid intermittent optimism over a possible peace agreement.
The currency has stabilised in recent sessions after talks between the US and Iran stalled.
