Dollar Erases 2026 Gains as Iran Ceasefire Saps Haven Demand

The dollar slumped, wiping out its gains for the year, after a ceasefire between Iran and the US sent oil prices tumbling and unwound one of the conflict’s most prominent haven trades.

The Bloomberg Dollar Spot Index weakened 0.8% on Wednesday, its worst day since January, as a relief rally swept through global markets. Stocks gained and the greenback fell against all 16 major peers — with the euro, pound and yen at one point posting 1% gains or more.