28.04.202601:26:06UTC+00Dollar Holds Decline on Diplomatic Push

The dollar index hovered around 98.5 on Tuesday, stabilizing after a sharp intraday decline in the previous session, as renewed diplomatic efforts to ease US–Iran tensions dampened demand for the safe-haven currency. Iran has reportedly conveyed a new proposal to Washington via Pakistani mediators, offering to reopen the Strait of Hormuz if the US lifts its blockade, though Tehran’s nuclear program remains a central obstacle to any agreement. Markets are also focused on the upcoming Federal Reserve policy meeting, where interest rates are widely expected to be left unchanged in what could be Jerome Powell’s final meeting as Fed chair. Fed nominee Kevin Warsh has underscored the importance of policy independence, even as markets continue to anticipate a more aggressive easing cycle. Investors are additionally awaiting policy decisions from other major central banks this week, including the ECB, BOE, and BOJ.