U.S. Dollar Falls 0.1% as U.S.-Iran Peace Agreement Dampens Safe-Haven Demand

The U.S. dollar weakened on Monday (June 15) after the U.S. and Iran announced a temporary peace agreement, with the dollar index (DXY) falling 0.1% to 99.68. The accord, which aims to end a conflict lasting over three months, sparked reduced safe-haven demand and boosted risk appetite, lifting global equities and pushing oil prices and Treasury yields lower.

The Federal Reserve will announce its interest rate decision on Wednesday, with markets expecting the rate to remain unchanged. Meanwhile, the Bank of Japan is set to raise its benchmark rate to 1% on Tuesday, marking the highest policy rate in over 30 years.