Dollar falls in broad risk rally after Trump announces Israel-Iran ceasefire
The dollar fell on Tuesday while the Australian and New Zealand dollars rose after U.S. President Donald Trump announced a ceasefire between Israel and Iran, in news that sent investors cheering and sparked a risk rally across markets.
Trump said that a "complete and total" ceasefire between Israel and Iran will go into force with a view to ending the 12-day conflict between the two nations, moments after both sides threatened new attacks.
An Iranian and Qatari official confirmed that Tehran had agreed to a ceasefire, while Israel's Channel 12 reported that Prime Minister Benjamin Netanyahu had agreed in a conversation with Trump to a ceasefire as long as Iran stopped its attacks.
The risk-sensitive Aussie got a lift from the news and last traded 0.35% higher at $0.6483 as did the kiwi, which rose 0.37% to $0.5998.
"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 details 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 0.21% at 145.79.
The euro rose 0.21% to $1.1602 and sterling advanced 0.18% to $1.3551.
Trump's comments on his Truth Social site came after Iran launched a missile attack on an American air base in Qatar on Monday that caused no injuries, in a move which he dismissed as a "weak response" to U.S. attacks.
Adding to headwinds for the dollar were dovish comments from Federal Reserve policymaker Michelle Bowman, who said the U.S. central bank should consider interest rate cuts soon.
Bowman's openness to cutting rates soon is supported by Fed Governor Christopher Waller, who said in a television interview last week he'd also consider a rate cut at next month's meeting.
"There appears to be increasing division among the ranks of the Fed board ahead of Fed Chair Powell's testimony," said Tony Sycamore, a market analyst at IG.
"The chance of a July rate cut... is still underpriced. I think it should be higher than that."
Markets are now pricing in about a 20% chance the Fed could ease rates in July, up from 14.5% a day ago, according to the CME FedWatch tool.
Fed Chair Jerome Powell is due to testify before the U.S. Congress on Tuesday and Wednesday, where focus will be on the outlook for U.S. rates.
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CNBC
30 minutes ago
- CNBC
Was it all 'just a big show?' Anxiety and frustration for Middle East residents after Iran-Israel attacks
DUBAI, United Arab Emirates — Escalating regional war, or a bunch of choreographed theatre? Millions across the Middle East were told to shelter in place Monday night as the airspace closed above them and Iran fired a barrage of missiles over Al-Udeid air base in Qatar, the U.S.' largest and most fortified military base in the region. Videos of interceptors lighting up the night sky over Doha went viral on social media, while flight tracking platforms showed passenger jets on their way to Dubai and Abu Dhabi abruptly reversing course. The Iranian strike, which U.S. President Donald Trump later described as "weak" and which the White House says was telegraphed before it was carried out in order to minimize casualties, came in response to unprecedented U.S. strikes on Iran's nuclear facilities last week, which were carried out with the largest non-nuclear bombs on earth. Trump has declared a cease-fire and called for peace. It remains to be seen whether Israel and Iran will both accept and stick to a ceasefire, and still more questions remain: what happened to Iran's enriched uranium supplies? How much damage was done in all the strikes? Does it end here? Will Iran's government survive? Will airspace reopen and flights resume all over the region? People around the region expressed their feelings, fears and hopes in conversations with CNBC. Several of those individuals chose to do so on the condition of anonymity, due to the sensitive nature of their comments, and over concerns of repercussions from the state or from their employers. "In my opinion, this war had one winner — and that was the United States. Because it also showed Israel that without the United States, it cannot win — or even end —a war. And the second loser was the Islamic Republic, which realized it had no military capability to counter U.S. airstrikes, and that the U.S. could access every part of Iran whenever it wished. And the biggest losers were the people of Iran, whose national wealth was spent on nuclear enrichment — only for it all to be destroyed in a matter of nights." — H., oil and gas business director in Tehran, Iran "I'm so 'ehhh' about this. It just seemed like a big show. I guess everyone was waiting on how Iran will respond. This is probably the best case scenario to calm things down. I hope the focus goes back to Gaza now. Many people are still getting killed there everyday." — Saed Elayan, Palestinian entrepreneur living in Dubai "People are laughing at the very limited scope of Iran's operation against Al-Udeid. Yet Tehran actually managed to deliver a potent geostrategic message to the Gulf states: Instead of being a wellspring of protection, hosting American forces on their soil could — and indeed would — only invite devastating attacks." — Mo, Egyptian-American living in Cairo "We're completely fed up. We're angry, frustrated, sad, and scared. We feel helpless and we feel a massive amount of injustice. We're tired of being attacked and destabilized by the U.S. and Israel under the guise of 'freeing us from tyranny'. It's laughable and we all see through it — we just want to live in peace and not watch our cousins get slaughtered for simply wanting to exist." — Kareem, Egyptian entrepreneur living in Dubai "Honestly I am not all that bothered about Iran. They caused more deaths in Iraq in the last 70 years than Israel did in Palestine. And if they decide to bomb each other, who am I to object. My only hope is that they keep it to themselves without dragging the rest of the region into it." — A., Iraqi expat living in Dubai "Just like all the other little interactions between Iran and Israel this has been very, very short lived, and they basically just kind of had a little skirmish and then called it a day. I knew this was going to be nothing different. And the real telltale sign was the fact that ... the Islamic Republic has never officially entered a state of war. Because a war inherently needs a winner and a loser. But this wasn't a war. This was just kind of like a little, I don't know, slap fight, little like a b---- slap fight every now and then, and either way, both parties could walk away and save face and say both of them won, and they technically did, because there was no war, so there is technically no loser." — Amir Hamidfar, content creator and video editor, Isfahan, Iran "As a Lebanese with a business in Saudi and UAE I want this to be over as soon as possible. We stand at equal distance from not liking both countries [Iran and Israel] and are so resilient that we are not worried, but want this to be over." — Cam Khoury, Lebanese entrepreneur, Dubai "For me personally as a Swiss citizen, I feel safe in Dubai. But I feel very weird, living a normal life, posting on social media, it feels wrong. Currently mainly worried about the flight situation – while other people are scared for their life. And I'm just so shocked how Israel could just attack a sovereign state without little to no consequences." — Luisa, Swiss expat working in Dubai "I hate waking up and wondering what happened. I go to sleep having no idea what the region will look like in the morning. I should have gotten out of here sooner than I planned to, now if flights stay grounded I'm stuck. But hopefully this is the end of it and it doesn't get worse from here." — H., American expat in Dubai "There's been a deep sense of fear — not just of war, but of something unravelling. We're living under the shadow of an escalating existential threat, where the future feels somewhat fragile and uncertain. And yet, alongside that fear, there's a persistent hope: that this moment of crisis could also be a turning point for something better." — Cochav Elkayam Levy, chair of the Civil Commission, central Israel "My family are ok thank god… I think I'm more anxious than them. Holy s--- man, like this is it. It's now or never [for the Iranian regime to fall]. So much to be nervous about. So much to be hopeful about. So much to cry about. So much to express joy about. It's a goddamn bipolar experience right now to be Iranian." — S., Iranian expat and consultant in Dubai "I basically am concerned about safe havens like Dubai no longer being safe havens because the USA and Israel can act independently of any international rules and with impunity. That the rest of the region will be dragged into this war all because of egos. Will my property price be affected? Will Dubai no longer be a safe place to live? Will my relatives in Iraq be safe considering they are so close to Iran?" — F., Iraqi expat and lawyer in Dubai ""There's a sense of relief that Iran's nuclear, disruptive capabilities and proxies have been seriously degraded — but also deep anxiety about the risk of another full-scale regional war, and a fragile ceasefire unlikely to hold. Starting a war is one thing — ending it is another. You have to wonder if the Middle East is doomed to 'forever wars,' or if true conflict prevention and peacebuilding will ever take root." — Mazen Hayek, media consultant, Dubai "Neighboring countries have to unite and pressure Israel to stop their relentless attacks on Iran immediately for any chance of peace. The current environment is a little scary for many and will negatively impact tourism, real estate, investors, and overall safety in the Persian Gulf. As a long time resident who lived through all the conflicts since Gulf War I, I am deeply concerned – for Iran and all countries on the Arabian Peninsula." — K., energy consultancy founder, European expat in Dubai
Yahoo
39 minutes ago
- Yahoo
Netanyahu says Israel accepts ceasefire and has achieved war goals against Iran
Israel and Iran on Tuesday accepted a ceasefire plan proposed by US President Donald Trump to end their 12-day war, after Tehran launched a retaliatory limited missile attack on a US military base in Qatar. The acceptance of the deal by both sides came after Tehran launched a final onslaught of missiles targeting Israel that killed at least four people early on Tuesday morning, while Israel launched a blitz of airstrikes targeting sites across Iran before dawn. Israeli Prime Minister Benjamin Netanyahu said Israel had agreed to a bilateral ceasefire with Iran in co-ordination with Mr Trump. Mr Netanyahu said that he had reported to Israel's security cabinet on Monday night that Israel had achieved all of its war goals in the 12-day operation against Iran, including removing the threat of Iran's nuclear and ballistic missile programmes. Israel also damaged Iran's military leadership and several government sites and achieved control over Tehran's skies, Mr Netanyahu said. 'Israel will respond forcefully to any violation of the ceasefire,' Mr Netanyahu said. The Iranian barrages had sent Israelis hurrying into bomb shelters as the sun rose, killing at least four people and injuring eight others, Israel's Magen David Adom rescue services said. Iran on its state television announced an overall ceasefire had begun at 7.30am local time. The barrage damaged at least three densely packed residential buildings in the city of Beersheba, police said. First responders said they retrieved four bodies from one building and were searching for more. Outside, the shells of burned out cars littered the streets. Broken glass and rubble covered the area. Hundreds of emergency workers gathered to search for anyone else trapped in the buildings. Police said some people were injured even while inside their apartments' reinforced safe rooms, which are meant to withstand rockets and shrapnel but not direct hits from ballistic missiles. The direct hit in the largest city in southern Israel came just days after the city's hospital sustained significant damage in a missile strike. The Israeli military said people could leave bomb shelters but cautioned the public to stay close to shelter for the coming hours. Mr Trump's announcement that Israel and Iran had agreed to a 'complete and total ceasefire' came soon after Iran launched a limited missile attack on Monday on a US military base in Qatar, retaliating for the American bombing of its nuclear sites. The US was warned by Iran in advance, and there were no casualties. "CONGRATULATIONS WORLD, IT'S TIME FOR PEACE!" –President Donald J. Trump — The White House (@WhiteHouse) June 23, 2025 Mr Trump's announcement on his Truth Social platform said the ceasefire beginning about midnight Washington time would bring an 'Official END' to the war. There were no reports of Israeli strikes in Iran after 4am in Tehran. Heavy Israeli strikes continued in Iranian cities until shortly before that time. Under the Trump plan, Israel was to halt its attacks on Iran by 1.30pm Tehran time. There was no report of Israel launching attacks against Iran since early Tuesday morning. Writing more than an hour after the first phase of the tentative ceasefire, which called for Iran to halt its attacks, Mr Trump added: 'THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT! DONALD J. TRUMP, PRESIDENT OF THE UNITED STATES!' Mr Trump gave the conflict between Israel and Iran a name: the '12 Day War'. That recalls the 1967 Mideast war, known by some as the 'Six Day War,' in which Israel fought a group of Arab countries including Egypt, Jordan and Syria. Mr Trump's reference carries emotional weight for the Arab world, particularly Palestinians. In the 1967 war, Israel captured the West Bank and east Jerusalem from Jordan, the Gaza Strip and the Sinai Peninsula from Egypt, and the Golan Heights from Syria. Though Israel later gave the Sinai back to Egypt, it still holds the other territories. Mr Trump communicated directly with Mr Netanyahu to secure the ceasefire, according to a senior White House official who insisted on anonymity to discuss the Monday talks. Vice president JD Vance, Secretary of State Marco Rubio and special envoy Steve Witkoff communicated with the Iranians through direct and indirect channels. The White House has maintained that the Saturday bombing helped get the Israelis to agree to the ceasefire and that the Qatari government helped to broker the deal. It is unclear what role Ayatollah Ali Khamenei, Iran's leader, played in the talks. He said earlier on social media that he would not surrender. Israel's Airports Authority said Iran's barrage forced them to close the country's airspace to emergency flights for several hours. Some flights were forced to circle over the Mediterranean Sea, according to Israeli media. Israel's airports have been closed since the war with Iran began, but a handful of emergency flights started arriving and departing over the past few days. By early on Tuesday, Qatar Airways resumed its flights after Qatar shut down its airspace over the Iranian attack on Al Udeid Air Base. Flight-tracking data showed commercial aircraft again flying in Qatari airspace, signalling Doha believed the threat on the energy-rich nation had passed. In Israel, at least 24 people have been killed and more than 1,000 wounded in the war. Israeli strikes on Iran have killed at least 974 people and wounded 3,458 others, according to the Washington-based group Human Rights Activists. The group, which has provided detailed casualty figures from Iranian unrest such as the protests surrounding the death of Mahsa Amini in 2022, said of those killed, it identified 387 civilians and 268 security force personnel. The US has evacuated some 250 American citizens and their immediate family members from Israel by government, military and charter flights that began over the weekend, a State Department official said. There are roughly 700,000 American citizens, most of them dual US-Israeli citizens, believed to be in Israel.
Business Insider
39 minutes ago
- Business Insider
Stock Futures Rise as Trump Signals Israel-Iran Ceasefire Timeline
U.S. stock futures trended higher after President Donald Trump announced a ceasefire timeline between Israel and Iran. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.72%, 0.42%, and 0.51%, respectively, at 8:46 p.m. EST, June 23. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter All three major indexes ended Monday's regular session in green, recovering from geopolitical tensions. Stocks rallied after Iran hit a U.S. base in Qatar in response to U.S. strikes on its nuclear sites. The S&P 500 rose 0.96%, the Nasdaq Composite gained 0.94%, and the Dow Jones climbed nearly 375 points. Oil prices, which had spiked overnight to their highest levels since January, pulled back sharply on Monday. At the time of writing, U.S. crude futures slipped 3.49% to around $66.12 a barrel.
