Dollar weakens against euro, yen as Iran talks lift risk appetite
SPY•The dollar index fell 0.37% to 101.84 as easing concerns about the Middle East conflict lifted risk appetite. The euro rose 0.57% to $1.1204, while the dollar fell 0.33% against the yen to 158.01.
1. Dollar retreats
The dollar weakened against major currencies on Monday as investors rotated back into risk assets after concerns about an escalation in the Middle East conflict eased. President Donald Trump said he was highly unlikely to order fresh attacks on Iran while diplomatic efforts continued. Brent crude futures fell 3.4% to $94.99 a barrel.
2. Data and rates ahead
Investors are watching Tuesday’s US consumer price index, expected to show a monthly rise of 0.3%. Futures implied an 82% chance of a Federal Reserve rate increase on December 9, and the yield on 10-year US notes rose 1.07 basis points to 4.87%. The Australian dollar rose 0.80% and the New Zealand dollar gained 1.29%.
