FX.co ★ Dollar Back to 2022-Lows

The dollar index fell to 97.8 on Monday, revisiting its lowest levels of 2022. This decline occurred as traders reduced some of their risk-averse positions amid ongoing developments in the Israel-Iran conflict. Investor sentiment improved after reports indicated that Iran is showing a readiness to restart negotiations concerning its nuclear program. According to The Wall Street Journal, Tehran has communicated to Arab officials its openness to resuming talks, contingent on the United States abstaining from involvement in the hostilities, according to sources. These developments come as Israel and Iran continue their exchanges of hostilities for a fourth consecutive day. Concurrently, focus shifts to an eventful week of monetary policy decisions, notably the Federal Reserve's announcements. While it is broadly anticipated that the Fed will maintain the current federal funds rate, market participants will meticulously scrutinize the central bank's updated economic forecasts, particularly to gauge policymakers' perspectives on the wider economic effects of President Trump's policies.