Stock Market

Story: Dollar Drops to Weekly Low on Middle East Ceasefire Hopes

By Julie Binoche

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Market Reactions Across Assets. James Monroe from FXStreet watched the action unfold.

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Central Bank Responses. The Bank of England kept its key rate at 4.5% Thursday, citing ongoing global uncertainties.

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The dollar tanked Thursday. Investors bet on a potential Middle East ceasefire, sending the greenback to its lowest point in a week as traders dumped safe-haven assets for…

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Currency markets went wild as speculation mounted about peace talks between warring parties in the region. The dollar traded around 1.0850 against the euro, down 0.

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Forex desks scrambled to adjust positions.

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James Monroe from FXStreet watched the action unfold. "Investors are responding cautiously to geopolitical signals," he said, noting how quickly sentiment can shift when Middle…

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The Japanese yen, another traditional safe-haven play, actually gained ground. It traded at 130.20 per dollar, up 0.

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US Treasury yields dropped too. The benchmark 10-year note fell to 3.45% as bond traders repositioned for what might be a less risky global environment.

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European Central Bank President Christine Lagarde jumped on a call with reporters. "We remain vigilant in assessing how these events might influence inflation and monetary…

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President Biden backed diplomatic efforts during a press conference, emphasizing the need for peaceful resolution.

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Fed Chair Jerome Powell weighed in too. "Geopolitical tensions can have significant implications for economic stability," he said during a panel discussion.

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Asian markets showed cautious optimism. Shanghai's Composite Index edged up 0.3% as local traders reacted to hopes of reduced global tensions.

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The Australian dollar got a small boost, trading at 0.7550 against the greenback. South Korea's won did even better, jumping 0.

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OPEC Secretary-General Haitham Al Ghais said Thursday that easing Middle East tensions could stabilize oil supply routes.

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The S&P 500 rose 0.4% with energy names leading gains. Bond markets saw the spread between 2-year and 10-year Treasuries narrow to 60 basis points, reflecting the shift in…

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