SINGAPORE — The dollar fell on Tuesday while the Australian and New Zealand dollars rose after US President Donald Trump announced a ceasefire between Israel and Iran, in news that sent investors cheering and sparked a risk rally across markets.
Trump announced a complete ceasefire between Israel and Iran, potentially ending the 12-day conflict that saw millions flee Tehran and prompted fears of further escalation in the war-torn region.
There was no immediate comment yet from Israel. While an Iranian official earlier confirmed that Tehran had agreed to a ceasefire, the country’s foreign minister said there would be no cessation of hostilities unless Israel stopped its attacks.
The risk-sensitive Aussie got a lift and last traded 0.3 percent higher at $0.6480 as did the kiwi, which rose 0.3 percent to $0.5994.
Israel’s shekel rallied sharply too, as it jumped 1 percent against the dollar to its strongest level since February 2023.
“It’s obviously positive news for risk sentiment,” said Rodrigo Catril, senior currency strategist at National Australia Bank.
“We need to obviously have a bit more detail in terms of exactly what all this means… I suppose it will be the conditions of the ceasefire, and what are the conditions for a more longer-lasting peace deal.”
The dollar, which last week drew support from safe-haven demand, fell broadly in the wake of the news.
Against the yen, the greenback was down 0.37 percent at 145.60.v
