SINGAPORE – International currency markets experienced dramatic shifts Wednesday morning as the U.S. dollar plummeted to its weakest position in two weeks following President Donald Trump’s announcement of a two-week ceasefire agreement with Iran.
Major world currencies saw significant gains against the American dollar during early Asian trading sessions. The Japanese yen rose 0.6 percent, reaching 158.68 yen per dollar, while the European euro climbed 0.7 percent to $1.167. The British pound also gained 0.7 percent, trading at $1.3385.
Australia and New Zealand’s currencies posted even stronger performances, with the Australian dollar surging 1.3 percent to $0.7068 and the New Zealand dollar jumping 1.4 percent to $0.5810.
The ceasefire announcement marked a dramatic shift from Trump’s earlier threats to launch extensive strikes against Iran’s civilian infrastructure. Financial markets embraced the news with enthusiasm, transitioning to what traders call a “risk-on” environment less than two hours before Trump’s ultimatum for Tehran to reopen the Strait of Hormuz was scheduled to expire.
The U.S. Dollar Index, which tracks the greenback’s performance against six major currencies, fell 1.0 percent to 98.97 – marking its lowest point in two weeks. Digital currencies also benefited from the positive market sentiment, with bitcoin climbing 3.4 percent to $71,664.41 and ethereum soaring 5.7 percent to $2,234.78.
