Dollar Retreats After Hitting Three-Month High Amid Geopolitical Tensions

The dollar experienced a decline after reaching a three-month high on Tuesday, driven by safe-haven flows and rising oil prices due to the U.S.-Iran conflict. According to Jin10, Jefferies economist Mohit Kumar noted in a report that U.S. President Donald Trump's proposal to insure ships passing through the Strait of Hormuz, along with potential countermeasures by Gulf countries against Iran, has boosted market sentiment. Investors are hopeful that the conflict may end sooner than expected. Meanwhile, Federal Reserve's Williams indicated that cooling inflation could pave the way for further interest rate cuts in the future. Investors are also focusing on upcoming U.S. economic data, including the ADP private sector employment report at 21:15 UTC+8 and the ISM services index at 23:00 UTC+8.