Dollar falls after Trump halts US strikes on Iran

NEW YORK - The dollar dropped sharply against major peers on Thursday after President Donald Trump called off plans for renewed U.S. military strikes on Iran at the last minute, saying negotiations with Tehran were heading towards a possible deal.

The dollar tends to strengthen during periods of heightened geopolitical uncertainty, as investors seek safe-haven U.S. assets, while it typically weakens when expectations of peace rise.

Trump said negotiations with Tehran had advanced to the highest levels of Iran's leadership and had been approved by a broad coalition of regional powers.

There was no immediate comment from Iran. Trump has repeatedly claimed that a deal with Tehran was imminent, only to have its government deny the suggestions.

The dollar weakened 0.35% to 0.797 against the Swiss franc, pairing gains in early trade.

The euro was up 0.21% at $1.1559, reversing losses earlier in the session.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.21%.

(Reporting by Chibuike Oguh in New York; Editing by Alex Richardson and Andrea Ricci )

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 11, 2026 at 11:34 AM.