Dollar drops as Trump ceasefire prompts risk-on turn for markets

The dollar sank to its lowest ​level in a month while the euro, yen, Aussie and kiwi ‌rallied hard in Asian trading on Wednesday after US President Donald Trump said he had agreed to a two-week ceasefire with Iran. The yen strengthened 0.7% ​against the greenback to 158.50 per dollar. The euro was ​up 0.7% at $1.1677, while the British pound appreciated 0.8% to $1.3403. The ⁠Australian dollar climbed 1.2% to $0.7063 and its New Zealand counterpart jumped 1.1% to $0.5795. Trump ​had earlier threatened widespread attacks on Iran’s civilian infrastructure, drawing ​international condemnation after issuing an extraordinary warning that “a whole civilization will die tonight” if his demands were not met. Investors’ risk appetite rapidly returned ​after the ceasefire announcement, less than two hours before Trump’s deadline for Tehran to ​reopen the Strait of Hormuz would have expired. If the Strait is reopened, “we ‌could ⁠be able to consolidate the risk-on rally that we’re seeing,” said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.