Khaberni - The dollar and the yen were under pressure on Tuesday as investors prepared to buy high-risk currencies and hoped for an agreement between the United States and Iran that would lead to the resumption of navigation in the Gulf.
As the ceasefire between the two countries draws to an end this week, uncertainty still clouds the fate of the peace talks with Iran, as Tehran has not yet decided how to proceed with the diplomatic process following a recent escalation in tensions.
Nevertheless, investors believe that both sides have the motivation to reach an agreement. U.S. President Donald Trump said the negotiations are proceeding "fairly quickly" and will result in better terms than previous agreements.
The euro stabilized at 1.1782 dollars, and the British pound was traded at 1.35225 dollars, down about 0.1% for both on Tuesday. The Australian dollar, highly sensitive to risks, dropped 0.1% to 0.7171 U.S. dollars in early trading.
The dollar index, which measures the performance of the U.S. currency against a group of currencies including the yen and the euro, settled at 98.087 after falling 0.2% on Monday.
The yen stabilized at 158.955 against the dollar and hovered near the 160 level, which traders consider a threshold for intervention.
Five informed sources suggested that the Bank of Japan might postpone raising interest rates next week, as declining chances of an end to the war in the Middle East soon keep the uncertainty surrounding economic outlooks and price expectations in the country.
The New Zealand dollar was traded at 0.59085 U.S. dollars with a 0.3% increase. The annual inflation rate in New Zealand remained unchanged at 3.1% in the first quarter, which is higher than the target range of the central bank, increasing the likelihood of another interest rate hike this year.
