Hedging demand cools down, and the dollar retreats from three-month highs

ChainCatcher reports that the US dollar retreated after reaching a three-month high on Tuesday, mainly driven by safe-haven capital inflows and rising oil prices due to the US-Iran conflict. Jefferies economist Mohit Kumar said that Trump’s proposal to provide insurance for ships passing through the Strait of Hormuz could lead Gulf countries to take retaliatory measures against Iran, boosting market sentiment. Federal Reserve Bank of New York President Williams stated that cooling inflation could provide room for further rate cuts in the future. Investors are focusing on upcoming US economic data, including the ADP private employment report at 21:15 Beijing time and the ISM services index at 23:00.

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