.jpg)
1 hour ago
3
![pff89]gx(s[madexbaalvjhx_media_dl_1.png](https://smartcdn.gprod.postmedia.digital/financialpost/wp-content/uploads/2026/05/dollar-erases-all-gains-since-iran-war-started.jpg?quality=90&strip=all&w=288&h=216&sig=OXUt7YzMYC8G-aDtqddQ_w)
Article content
(Bloomberg) — The dollar extended a decline, erasing its gains since the start of the war in the Middle East, after a report said the US and Iran are nearing an agreement to end the conflict.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The Bloomberg Dollar Spot Index fell as much as 0.8% to its lowest since Feb. 26. Axios reported that the White House believes it is close to reaching an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.
Article content
Article content
Article content
The greenback weakened against almost all major currencies following the report, while US stock futures rallied and oil prices slid. The US currency had already been under pressure after another sudden surge in the yen.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“The latest headlines mark a significant shift in the narrative and are likely to be taken as a clear positive by markets,” said Daniela Hathorn, senior market analyst at Capital.com, adding that investors are likely to lean further into “glass-half-full” positioning, continuing to unwind some of the worst-case scenarios that had been priced in.
Article content
Currencies that had strengthened since early March on the back of rising oil prices, including the Canadian dollar and Norway’s krone, also came under pressure.
Article content
The dollar’s return to pre-war levels comes as optimism over a possible resolution weighs on energy prices and saps demand for haven assets. The yield on US 10-year notes slipped nearly nine basis points to 4.34%, while Brent futures fell 7% to $102 a barrel, the lowest in almost two weeks.
Article content
Options pricing shows investors are no longer betting with conviction on dollar gains over the next week. A gauge of demand for bullish versus bearish dollar trades is at its least favorable level for the greenback since late February.
Article content
(Updates with analyst comment in fourth paragraph, context throughout.)
Article content
English (US)