{"id":127686,"date":"2026-05-29T12:38:00","date_gmt":"2026-05-29T08:38:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=127686"},"modified":"2026-05-29T13:39:32","modified_gmt":"2026-05-29T09:39:32","slug":"dollar-treads-water-as-iran-60-day-ceasefire-deal-eases-safe-haven-demand-tokyo-cpi-miss-pressures-yen","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/dollar-treads-water-as-iran-60-day-ceasefire-deal-eases-safe-haven-demand-tokyo-cpi-miss-pressures-yen\/05\/29\/market-updates\/","title":{"rendered":"Dollar Treads Water as Iran 60-Day Ceasefire Deal Eases Safe-Haven Demand: Tokyo CPI Miss Pressures Yen"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dollar little changed:<\/strong> The DXY held near 99 in Asian trade after slipping 0.2% overnight, headed for a weekly loss.<\/li>\n\n\n\n<li><strong>Ceasefire extension reported:<\/strong> The U.S. and Iran have reached a draft framework to extend the truce 60 days while nuclear and regional security talks continue.<\/li>\n\n\n\n<li><strong>Awaiting final approval:<\/strong> The proposal still needs Trump&#8217;s sign-off and Iranian confirmation.<\/li>\n\n\n\n<li><strong>Hormuz hopes ease energy markets:<\/strong> The tentative deal raised expectations of gradual shipping normalization through the strait.<\/li>\n\n\n\n<li><strong>Regional currencies in tight ranges:<\/strong> Uncertainty over a long-lasting deal limited FX moves.<\/li>\n\n\n\n<li><strong>PCE inflation stays hot:<\/strong> April PCE rose 3.8% year-on-year \u2014 its fastest pace in roughly three years \u2014 reinforcing higher-for-longer rate bets.<\/li>\n\n\n\n<li><strong>Weaker U.S. growth tempers dollar:<\/strong> Soft Q1 GDP revision limited Treasury yield gains and capped dollar upside.<\/li>\n\n\n\n<li><strong>Yen flat near 159:<\/strong> USD\/JPY traded largely unchanged despite earlier Tokyo inflation miss.<\/li>\n\n\n\n<li><strong>Tokyo core CPI misses:<\/strong> Slowed to 1.3% year-on-year in May \u2014 below the BOJ&#8217;s 2% target for a fourth straight month.<\/li>\n\n\n\n<li><strong>Headline inflation weak:<\/strong> Tokyo CPI eased to 0.7%, while ex-food and energy measure was flat.<\/li>\n\n\n\n<li><strong>BOJ caution reinforced:<\/strong> The soft inflation figures support the BOJ&#8217;s measured approach to policy normalization.<\/li>\n<\/ul>\n\n\n\n<p>The U.S. dollar was little changed on Friday as investors weighed prospects of a U.S.-Iran peace deal after reports said Washington and Tehran were close to extending their ceasefire agreement.<\/p>\n\n\n\n<p>The U.S. Dollar Index was little changed at 99 in Asian trade after slipping 0.2% overnight, and was headed for a weekly loss.<\/p>\n\n\n\n<p>U.S. Dollar Index Futures also traded largely unchanged.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">U.S. and Iran Reportedly Reach Tentative Deal to Extend Ceasefire<\/h2>\n\n\n\n<p>Investor sentiment improved after reports late Thursday said the United States and Iran had reached a draft framework to extend their ceasefire for another 60 days while negotiations continue over Tehran&#8217;s nuclear program and regional security issues.<\/p>\n\n\n\n<p>The proposal still awaits approval from U.S. President Donald Trump and confirmation from Iran.<\/p>\n\n\n\n<p>The tentative agreement raised hopes for easing restrictions around the Strait of Hormuz, helping calm energy markets and boosting broader risk appetite.<\/p>\n\n\n\n<p>Still, regional currencies moved in narrow ranges due to uncertainty about a long-lasting deal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Inflation vs. Growth Tug-of-War<\/h2>\n\n\n\n<p>Currency markets were also digesting Thursday&#8217;s U.S. inflation data, which showed persistent price pressures in the world&#8217;s largest economy. The personal consumption expenditures price index \u2014 the Federal Reserve&#8217;s preferred inflation gauge \u2014 rose 3.8% year-on-year in April, marking its fastest pace in roughly three years.<\/p>\n\n\n\n<p>The data fueled bets that the Federal Reserve could keep interest rates elevated for longer, although weaker U.S. growth data released alongside the inflation figures tempered gains in Treasury yields and limited support for the dollar.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tokyo Core CPI Slows Unexpectedly in May<\/h2>\n\n\n\n<p>The Japanese yen&#8217;s USD\/JPY pair traded largely flat on Friday.<\/p>\n\n\n\n<p>Data released on Friday showed Tokyo core consumer inflation slowed to 1.3% in May from a year earlier, remaining below the Bank of Japan&#8217;s 2% target for a fourth straight month.<\/p>\n\n\n\n<p>Headline Tokyo inflation eased to 0.7%, while an index excluding both fresh food and energy was flat on the month.<\/p>\n\n\n\n<p>The softer inflation figures reinforced expectations that the BOJ will proceed cautiously with further monetary policy normalization \u2014 limiting support for the yen despite stronger Japanese factory output data released earlier in the session.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Dollar little changed: The DXY held near 99 in Asian trade after slipping 0.2% overnight, headed for a weekly loss. Ceasefire extension reported: The U.S. and Iran have reached a draft framework to extend the truce 60 days while nuclear and regional security talks continue. Awaiting final approval: The proposal still needs Trump&#8217;s &hellip;<\/p>\n","protected":false},"author":9,"featured_media":53129,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-127686","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=127686"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127686\/revisions"}],"predecessor-version":[{"id":127687,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127686\/revisions\/127687"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/53129"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=127686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=127686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=127686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}