The dollar index (DXY00) fell by 0.12% on Monday due to reduced safe-haven demand for the dollar, as investors hoped that the conflict between Israel and Iran would be contained. The dollar was also under pressure from Monday's US economic news, which showed an unexpected decline in the June Empire manufacturing general business conditions survey. Losses in the dollar accelerated Monday on a news report that said Iran wants to cease hostilities and restart talks over its nuclear program. The dollar remains generally weak due to expectations of weaker US economic growth and reduced foreign investment in the US caused by President Trump's tariffs. Losses in the dollar were limited on Monday due to higher T-note yields.
The US Jun Empire manufacturing survey of general business conditions unexpectedly fell -6.8 to -16.0, weaker than expectations of an increase to -6.0.
