Dollar Steadies Amid Iranian Ceasefire Extension and Fed Speculations

The dollar held its ground, momentarily reaching a one-week high in Asian trading, driven by skepticism over U.S. President Donald Trump's indefinite ceasefire extension with Iran, which increased demand for the safe-haven currency. The dollar was further buoyed by the remarks from Kevin Warsh, a U.S. Federal Reserve nominee, perceived as slightly hawkish, and by robust retail sales data portraying a strong American economy.

Earlier, the U.S. dollar index, tracking the dollar's strength against six currencies, dropped to 98.367 after peaking at its highest since April 13. Analysts from DBS noted that Trump's decision to extend the ceasefire without lifting the blockade on Iranian ports leaves energy export timelines from the Strait of Hormuz uncertain. With other major currencies mostly unchanged, the euro steadied at $1.1742 and the British pound remained flat at $1.3511, while the Australian and New Zealand dollars saw slight gains.

In separate developments, Kevin Warsh emphasized his independence from the White House during his Senate confirmation hearing, aiming to lead the Fed without succumbing to presidential pressure to cut rates. Market analysts highlighted that his comments had limited impact on market expectations due to a concentration on oil price-driven dollar strength amid ongoing Iran tensions.