US Dollar Slides as Fed Minutes and Iran Tensions Weigh on Markets

The U.S. dollar index slipped modestly after the Federal Reserve’s June meeting minutes showed less hawkish tones than expected, while President Donald Trump announced that a cease‑fire with Iran had ended. The mixed signals prompted a modest decline in the dollar against a basket of major currencies, with the euro and British pound each gaining around 0.2% and the yen remaining under pressure near four‑decade lows. Oil prices rose sharply after U.S. strikes on Iran, adding to inflation concerns that keep markets cautious.

Analysts note that the Fed’s divided stance on further rate hikes, combined with persistent inflation risks, sustains expectations that interest rates could stay elevated. In Asia, the Chinese yuan edged stronger against the dollar, while the Japanese yen continued to weaken. Traders are now awaiting the upcoming U.S. CPI report, which could trigger another move in the dollar depending on whether inflation surprises to the upside or downside.