The dollar index held above 98.3 on Wednesday after rising in the previous session, as the collapse of plans for a second round of US–Iran peace talks bolstered safe-haven demand for the greenback. Reports indicated that Vice President JD Vance canceled a scheduled trip to Islamabad for negotiations after Tehran, via Pakistan, informed Washington it would not attend. Iran also said it would not reopen the Strait of Hormuz as long as the US Navy continued intercepting vessels in the area.
Meanwhile, President Donald Trump extended the current ceasefire, saying he would delay any further strikes until Iran submits a new proposal and the talks are concluded. On the policy front, Federal Reserve nominee Kevin Warsh vowed to preserve the central bank’s independence from the White House while pursuing broad reforms, a position viewed as more hawkish than markets had anticipated.
