Dollar Dips as Global Currencies Surge on U.S.-Iran Ceasefire

The dollar fell to its lowest level in two weeks as trading commenced in Asia on Wednesday. This came after U.S. President Donald Trump announced a two-week ceasefire with Iran, sparking a surge in global currencies including the euro, yen, Aussie, and kiwi.

The yen strengthened significantly, rising 0.6% against the dollar to hit 158.68 yen per dollar. Meanwhile, the euro appreciated by 0.7% to $1.167, and the British pound followed suit, rising by 0.7% to reach $1.3385. The Australian and New Zealand dollars also climbed after Trump's ceasefire announcement, which came just hours before his set deadline for Iran to reopen the Strait of Hormuz expired.

In addition to the dollar's dip, the U.S. dollar index fell by 1.0% to 98.97, reflecting a two-week low. Cryptocurrencies saw gains as well, with bitcoin surging 3.4% to $71,664.41 and ether increasing by 5.7% to $2,234.78, as market confidence improved post-announcement.