US dollar steady around 1-week high after Trump says Iran MOU ‘over’

Published Wed, Jul 8, 2026 · 08:22 PM

[LONDON] The greenback was broadly steady at its highest level in roughly a week on Wednesday (Jul 8) after US President Donald Trump said an interim memorandum of understanding signed with Iran to end their conflict was “over”.

Meanwhile, investors also looked ahead to Federal Reserve meeting minutes due later in the day.

Trump, who was speaking before a Nato summit in Turkey, also said that he did not want to engage with Teheran. A source familiar with the talks at the summit said Trump did not repeat his announcement of a termination of the interim deal there.

The US dollar index, which measures its strength against a basket of six currencies, was little changed on the day at 101.19. It was hovering around its highest since Jul 2, in a somewhat choppy session for the safe-haven currency.

“The US dollar has reacted, but the market has learnt to take Trump’s comments with a pinch of salt. The remarks may be meant to bring the opposition to the table. Nevertheless, they will raise anxiety levels another notch,” Jane Foley, head of FX strategy at Rabobank, said.

Brent crude was last up 5.85 per cent at US$78.50 a barrel, extending a rally into a second day.

Trump’s comments come after Iran’s Revolutionary Guards on Wednesday said they attacked US military sites in Bahrain and Kuwait, after the US launched a wave of airstrikes against Iran in response to attacks on tankers in the Strait of Hormuz.

Elsewhere, the New Zealand dollar was last 0.21 per cent higher at US$0.5689, having pared earlier gains.

This was after the Reserve Bank of New Zealand hiked rates by 25 basis points to 2.5 per cent to curb inflation pressures, as most economists had expected, and said “some further reduction in monetary stimulus is likely to be required” to control inflation.

“A key argument for the hike is a concern that financial conditions would have eased further if the (central bank’s official cash rate) was left unchanged,” Westpac analysts said in a research note.

Later in the day, traders will be watching out for minutes from the Federal Reserve’s June meeting, which was new chair Kevin Warsh’s first.

“Today’s minutes will clarify how serious members are about the possibility of rate hikes,” Francesco Pesole, FX strategist at ING, said in a note.

“Based on post-meeting communication, we see limited risk of a dovish surprise in the minutes. We expect a cementing of the hawkish message to firm up US dollar momentum,” he said, noting that a break higher was not expected, however, as markets may hesitate to rerate expectations sharply higher after last week’s soft jobs data.

Elsewhere, the US dollar rose 0.25 per cent against the Japanese yen to 162.49 yen, advancing for a fourth day as traders remained alert to possible intervention from Japanese authorities.

The euro was 0.1 per cent lower at US$1.1397, while the British pound similarly fell to US$1.3336. REUTERS