The dollar fell around one percent against the euro and the pound in early European trading Wednesday as investors sold the greenback on relief over a temporary ceasefire between the United States and Iran.
At around 8:10 am (0610 GMT), the dollar, usually a safe investment haven in times of market turmoil, was trading at 1.17 euros, down around 1.1 per cent. Against the pound, the dollar fell around 0.9 per cent to $1.34.
READ ALSO: NNPC Increases Dangote Refinery Crude Supply To 10 Cargoes
US President Donald Trump said Tuesday he agreed to suspend bombing of Iran for two weeks as part of a ceasefire deal if Tehran completely reopens the vital Strait of Hormuz.
“Subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump posted just an hour before his deadline to start catastrophic attacks.
“This will be a double sided CEASEFIRE!” Trump wrote.
“The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East.
“We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate.”
The announcement came after Pakistan made a last-minute proposal to avert massive US attacks on Iran, with Trump warning a “whole civilization will die tonight” unless a deal was agreed.
“Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two week period will allow the Agreement to be finalized and consummated,” Trump added.
