Published by Global Banking & Finance Review®
Posted on April 15, 2026
3 min readLast updated: April 15, 2026
Add as preferred source on GoogleThe U.S. dollar hovered near six‑week lows on April 15 as renewed optimism over U.S.–Iran talks boosted risk appetite. Oil prices slipped amid growing diplomatic momentum, denting the safe‑haven appeal of the dollar.
By Ankur Banerjee
SINGAPORE, April 15 (Reuters) - The U.S. dollar lingered near six-week lows on Wednesday, surrendering nearly all the gains it had made since the Middle East war erupted as hopeful signs of another round of talks between the U.S. and Iran lifted risk appetite.
Tehran has effectively shut the Strait of Hormuz, a crucial waterway for a fifth of global oil and gas shipments, since the U.S.-Israel war with Iran began on February 28, a move that has sent oil prices surging and dampened investor sentiment.
Washington imposed a blockade on Iranian ports after the collapse of weekend negotiations but hopes grew as U.S. President Donald Trump said on Tuesday talks to end the war could resume in Pakistan in the coming days.
The euro bought $1.1793, hovering near its highest since March 2. Sterling was at $1.3574. The dollar index, which measures the U.S. currency against six units, was at 98.109, near its lowest in over six weeks.
Although talks in Islamabad last weekend failed to produce a breakthrough - raising doubts over the durability of a two-week ceasefire that still has a week to run - investors are clinging to hopes that diplomacy could yet deliver a resolution.
"There is a growing expectation that the standoff will soon be resolved, allowing the U.S. administration to pivot towards declaring victory, before stimulating the economy ahead of the midterms," Tony Sycamore, market analyst at IG.
Brent crude futures fell 0.28% to $94.52 a barrel after tumbling 4.6% in the previous session. U.S. West Texas Intermediate crude was down 0.7% to $90.64 after dropping 7.9% on Tuesday.
That spurred a risk-on rally across asset classes with stocks surging and the risk sensitive Australian dollar hitting its highest level since March 12. The Aussie was steady at $0.7124 in early trading.
"Cross-asset moves suggest investors are increasingly pricing the conflict as a temporary energy shock that could fade if diplomacy holds," OCBC strategists said in a note. "The broader signal was decisively risk-on rather than defensive positioning."
The Japanese yen was little changed at 158.88 per U.S. dollar in early trading. Bitcoin was 0.6% higher at $74,612, just below the two month high it touched on Tuesday.
(Reporting by Ankur Banerjee in SingaporeEditing by Shri Navaratnam)
The U.S. dollar is near six-week lows due to positive sentiment around potential renewed negotiations between the U.S. and Iran, improving risk appetite in markets.
Tehran’s closure of the Strait of Hormuz led to a surge in oil prices, but hopes of new talks have since eased prices and boosted investor confidence.
The Strait of Hormuz is critical as it serves as a passageway for a fifth of global oil and gas shipments, impacting energy and financial markets globally.
Currencies like the euro, sterling, and Australian dollar have strengthened, while the Japanese yen and bitcoin have seen marginal changes amid the dollar's decline.
Investors hope that renewed U.S.-Iran talks will resolve the conflict, reduce energy market pressure, and further encourage a risk-on rally across global markets.
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