FOREX-Dollar falters after Iran's offer to reopen Hormuz sends oil lower
TLT•Dollar eases after oil falls on Strait of Hormuz comments
Sept. 22 (Reuters) - The dollar whipsawed on Tuesday, weakening after hitting a near-two-month high after oil prices fell following Iran's proposal to reopen the Strait of Hormuz within seven days if the US eases military pressure.
The US currency fell 0.12% versus the yen to 157.15 JPY=EBS, while the euro EUR=EBS was largely unchanged at $1.146. Sterling GBP=D3 dipped 0.09% to $1.3356.
The volatility highlights the web of forces roiling forex markets at a time when the global interest rate outlook has been complicated by the prolonged conflict in the Middle East.
The disruption in the Strait of Hormuz has strained global oil supplies and added to inflationary pressures, prompting investors to swiftly reprice assets at the slightest hint of a shift in outlook.
