Khaberni - The dollar declined on Monday after American President Donald Trump announced his postponement of targeting the electrical infrastructure in Iran following his mention of fruitful talks between the two countries, which alleviated short-term concerns and slightly boosted high-risk assets.
Trump said that he asked the Department of War to postpone "all strikes" against Iranian power stations and energy infrastructure for five days.
Trump made this statement through the Truth Social platform just hours before the deadline he set for Tehran to fully open the Strait of Hormuz, threatening to destroy Iranian power stations in a new escalation of the conflict that has entered its fourth week.
Stephen Englander, head of foreign exchange research at Standard Chartered, said, "The market views this as potentially reducing some short-term risk in the energy sector, as nations will not bomb each other's infrastructure in the next few days."
He added, "This does not mean the worst is over, but it means the likelihood of it happening in the next few days has decreased."
The dollar fell 0.7% against the euro and 0.6% against the yen, immediately after Trump's post.
The British pound rose 0.92% to $1.3464.
As a result, the dollar index, which measures the performance of the American currency against a basket of major currencies, fell by 0.6% to 98.94 points.
On Friday, the index recorded its first weekly decline since the outbreak of the war, as inflationary effects of rising oil prices pushed central banks to adopt hawkish monetary policies, which supported other currencies.
Axios reported that Turkey, Egypt, and Pakistan met separately with President Donald Trump's special envoy, Steve Witkoff, and with the Iranian Foreign Minister Abbas Araghchi.
