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01.06.202601:49:41UTC+00Dollar Rises Amid Iran Deal Uncertainty

The dollar index climbed back above 99 on Monday, breaking a two-session losing streak as uncertainty persisted over the prospects for a longer-term ceasefire between the United States and Iran. Over the weekend, Washington and Tehran exchanged proposals seeking revisions to a draft agreement aimed at extending the ceasefire and reopening the Strait of Hormuz, but there were few signs that a breakthrough was imminent. President Donald Trump reiterated his demand that Iran halt its nuclear program and fully restore the strait’s status as an open international waterway.

At the same time, investors shifted their focus to the closely watched US nonfarm payrolls report, seen as a key gauge of labor market strength and a guide to the Federal Reserve’s policy outlook. Market participants are increasingly pricing in the possibility of a Fed rate hike before year-end after inflation quickened, marking a sharp reversal from earlier expectations of interest rate cuts.

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