Why is the U.S. dollar trading near 10-day lows despite a Middle East peace deal?

The U.S. dollar held near 10-day lows because the preliminary U.S.-Iran agreement to extend the ceasefire and reopen the Strait of Hormuz buoyed global risk appetite, reducing demand for the dollar as a safe-haven asset; however, currency market reaction remained constrained as investors prioritized upcoming central bank meetings — particularly the Bank of Japan and Reserve Bank of Australia — over the geopolitical development, given lingering uncertainty about near-term inflation and interest rate paths.

What are markets focusing on in the upcoming Bank of Japan and Reserve Bank of Australia meetings?

Markets are focusing on the Bank of Japan’s expected rate hike to a 31-year high and, more critically, the tone of its communication — especially Deputy Governor Shinichi Uchida’s press briefing — regarding the pace and timing of future hikes, as the yen remains near the intervention-sensitive 160 level; for the Reserve Bank of Australia, attention is on whether its statement maintains a tightening bias or begins acknowledging easing inflation pressures, even though it is widely expected to hold rates steady after three consecutive hikes amid still-elevated inflation.

Dollar Sways Near 10-Day Lows as Attention Turns to BOJ and RBA

Jun 15, 2026

The US dollar weakened near 10-day lows following a Middle East peace deal that lowered oil prices by easing supply fears. Investors now await interest rate decisions from the Bank of Japan and Reserve Bank of Australia amid inflation concerns.

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