US Dollar Falls for Fourth Consecutive Day as Markets Eye Fed Decision

On Tuesday, June 16, the US dollar slipped for a fourth straight trading day amid improved investor risk sentiment driven by expectations of a US-Iran peace accord. The Dollar Index (DXY), which tracks the greenback against six major currencies, fell 0.1% to 99.56 by New York close.

The US and Iran are scheduled to hold formal talks in Switzerland on Friday and sign a cooperation memorandum (MoU). President Trump stated that the Strait of Hormuz, nearly closed since late February, will "fully reopen" on Friday. Separately, the Bank of Japan raised its policy rate by 25 basis points to 1.0%, marking Japan's highest rate in 31 years. Markets await the Federal Reserve's interest rate decision on Wednesday under newly appointed Chair Kevin Warsh, with the FOMC widely expected to hold rates steady.