On Friday, the dollar index (DXY) fell by 0.24% as optimism grew around the resumption of US-Iran peace talks. Iranian Foreign Minister Abbas Araghchi is expected to arrive in Pakistan for potential negotiations, amid heightened tensions over the Strait of Hormuz. The situation has sparked safe-haven demand for the dollar despite falling crude oil prices, which eased inflation expectations and negatively impacted the dollar’s value.
The University of Michigan’s April consumer sentiment index was revised upward by 2.2 points to 49.8, surpassing expectations of 48.5. Meanwhile, the March national CPI in Japan increased by 1.5% year-over-year, stronger than anticipated, and the March PPI services prices rose by 3.1%. In financial markets, swaps indicate only a 1% chance of a rate hike by the Federal Open Market Committee (FOMC) at its upcoming meeting.
The German IFO business confidence index fell to 84.4, a near six-year low, missing forecasts. The euro rose by 0.32% amid dollar weakness, while the yen rebounded against the dollar as markets balanced optimism over US-Iran negotiations and domestic inflation data. Precious metals also saw gains, with gold up 0.36% and silver up 1.21%, supported by the weaker dollar and lower treasury yields.
