The dollar index (DXY00) on Monday fell by -0.04%. The dollar was under pressure on Monday as stocks recovered on hopes for a ceasefire in Iran, curbing liquidity demand for the dollar. Axios reported that the US, Iran, and a group of regional mediators are discussing the terms for a potential 45-day ceasefire that could lead to a permanent end to the war. The dollar also fell after the Mar ISM services index fell more than expected.
However, the dollar recovered most of its losses Monday afternoon when President Trump threatened escalation of the war in Iran if there is no deal to reopen the Strait of Hormuz by Tuesday.
