The U.S. dollar fell to its lowest level in six weeks on Wednesday, driven by a broad-based retreat in risk aversion as diplomatic efforts in the Middle East showed tangible progress.
The greenback’s decline reflects a shift in market focus away from geopolitical safe-haven flows and toward a reassessment of regional stability following recent US-Iran negotiations.
In the foreign exchange session, the Japanese yen stabilized at 157.61 per dollar, finding support after authorities intervened to curb volatility in recent days.
The pause in selling pressure on the yen suggests that the immediate threat of further aggressive monetary intervention has receded, allowing currency markets to rebalance.
Meanwhile, the dollar weakened against a basket of emerging-market currencies, although it held steady against the Brazilian real, indicating a selective rather than uniform repricing across EM assets.
The market move comes as investors digest the conclusion of talks between Washington and Tehran, which ended with indications of a potential de-escalation.