Analysis: The uncertainty of the US-Iran agreement may prevent the US dollar from significantly weakening.

Jane Foley of Rabobank stated in a report that the uncertainty surrounding the reopening of the Strait of Hormuz should prevent a larger decline in the traditional safe-haven currency, the US dollar. The United States and Iran have reached a temporary peace agreement, with President Trump announcing the reopening of the strait on Friday. Foley said, however, that challenges from naval mines and delays in redistributing shipping mean that the supply of oil through the strait will not return to normal for a long time. She also noted that the market has lowered expectations of a rate hike by the Federal Reserve, but also lowered expectations of tightening by the European Central Bank, which has eased the impact on the Euro to US dollar exchange rate. The Euro rose by 0.4% to 1.1610 US dollars, while the DXY Dollar Index fell by 0.2% to 99.525.