Huitong News, April 14 — The US dollar index continues to weaken: easing tensions between the US and Iran combined with declining consumer confidence have once again reinforced the narrative of a weak dollar.

On Tuesday (April 14), during the Asian-European session, the US dollar index continued to decline after a sharp rebound on Monday, currently trading at 98.21, down 0.2%. The stagnation of the US dollar index is becoming increasingly evident.

The immediate trigger for the current dollar weakness is the rapid decline in geopolitical risks in the Middle East: four sources reported that US and Iranian negotiating teams will return to Islamabad at the end of this week to resume peace talks, and the ongoing conflict with Iran has a chance to de-escalate tensions.
Although Iran continues to demonstrate a firm stance — a representative of the Ministry of Defense rejected US attempts at military intervention in the Strait of Hormuz and the Gulf of Oman, and warned that an attack on Iranian ports would paralyze shipping across the Persian Gulf, and Iran's parliament also mentioned the possibility of adjusting passage rules through the Persian Gulf — expectations of renewed negotiations have already reduced risk appetite in the market and formally undermined the logic of dollar strengthening based on the geopolitical conflict.