Optimism Around US Talks With Iran Has Impacted Global Markets

• 21.05.2026, 10:58

The dollar rally has paused, bitcoin is stable.

The dollar shows no pronounced movement on Thursday, holding below a six-week high, amid hopes for a deal between the US and Iran soon. U.S. President Donald Trump said Wednesday that talks with Tehran are in their final stages. However, he also warned of possible further strikes if Tehran does not go for an agreement.

The dollar index against a basket of six major currencies was stable at 99.193 by 08:49 (Minska). The Australian dollar declined after an unexpected rise in the unemployment rate to its highest since 2021, in turn weakening the likelihood of an interest rate hike. The currency fell 0.43% to $0.7118. The Japanese yen was little moved near 159.02. Bank of Japan Governing Council member Junko Koeda gave some support to the yen with her hawkish comments on Thursday, saying the central bank needs to keep raising rates as core inflation has already reached a target of around 2%.

The euro held steady at $1.1619 after sagging the previous day to its lowest since April 7. "Fund flows into safe haven assets reversed due to positive news on the Iran war," said Joseph Capurso of Commonwealth Bank of Australia in a note. That said, while the U.S. has domestic political incentives to seek peace, we would not be surprised if Trump chooses military escalation to gain an advantage in negotiations, he added.

The pound sterling was little changed at $1.3428 and the Swiss franc was near 0.787. The yuan was flat on the mainland and offshore markets, holding steady at 6.8034 and 6.8064 respectively.

Bitcoin was steady at $77,707.96 and etherium was steady at $2,134.32.