Stock Market

Story: Dollar Crashes Hard on Iran Deal

By Steven Anderson

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Euro and Yen Surge Higher. The euro jumped to $1.12 while the yen strengthened to 118 per dollar.

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Fed Faces Tough Choices. The Federal Reserve now has a problem. Inflation is still running hot, but if Middle East tensions…

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Markets Rally on Stability Hopes. Gold prices climbed to $1,950 per ounce Friday. Investors often buy gold when currencies get…

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The dollar got crushed Friday. Markets dumped America's currency after news broke about a ceasefire between Washington and Tehran, sending the greenback to its worst levels since…

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The dollar index, which tracks the buck against six major currencies, plunged 1.5% this week alone. That's the biggest weekly drop in over three months.

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The euro jumped to $1.12 while the yen strengthened to 118 per dollar. Both moves caught some traders off guard, but the logic was pretty clear - less Middle East tension means…

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European Central Bank President Christine Lagarde said Thursday the euro's rise "reflects a shift in investor sentiment.

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The Bank of Japan is watching closely. Officials noted Friday that the yen's strength could hurt Japan's export-heavy economy, though they didn't signal any plans to intervene yet.

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The Federal Reserve now has a problem. Inflation is still running hot, but if Middle East tensions keep cooling, the central bank might slow down interest rate hikes.

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Iran's central bank is monitoring things too. The Iranian rial, which has been getting hammered for years under sanctions, might finally catch a break.

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And there's more moving parts here. Saudi Arabia's riyal stabilized as regional tensions eased - the Saudis have been pushing diplomatic efforts behind the scenes.

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The International Monetary Fund jumped in Thursday with a statement urging central banks to "remain vigilant against potential economic disruptions.

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Gold prices climbed to $1,950 per ounce Friday. Investors often buy gold when currencies get volatile, and despite the ceasefire news, plenty of traders still want protection…

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U.S. Secretary of State Antony Blinken heads to Europe next week to meet with allies about the ceasefire's bigger implications.

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But here's the thing - nobody knows if the ceasefire will stick. The U.S.-Iran relationship has been a mess for decades, and one agreement doesn't fix everything overnight.

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