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US dollar weakens as US-Iran talks raise hopes for Gulf peace and ease inflation fears.

Market News
17 Apr 2026
FXEmpire
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Neutral
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The US dollar declined against major currencies amid optimism for a second round of US-Iran talks and an extension of the current ceasefire, reducing demand for the dollar as a safe haven. Inflation data in the US matched expectations, easing fears of aggressive Federal Reserve rate hikes. Gold prices rose on hopes of de-escalation in the Gulf and lower chances of monetary tightening. The euro also strengthened, nearing pre-conflict highs, supported by positive economic sentiment and reduced risks of severe economic fallout. Investors now await the Federal Reserve's meeting on April 29 for further direction.

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