Original Source
Dollar Recovers Half of War-Driven Gains Amid US-Iran Talks Expectation
Dollar Value Declines
Regardless of the outcome of US-Iran peace talks, the dollar has reversed more than half of its war-driven gains this month. On April 15 (local time), the ICE Dollar Index closed at 98.12, a 1.8% drop from 99.96 at the end of March, marking seven consecutive days of decline. The dollar, which had risen over 3% in a month due to safe-haven demand during the war, has now surrendered more than half of those gains this month.
Hedge Funds Bet on Dollar Weakness
The ICE Dollar Index, calculated against six major currencies, surged 3.1% in March, its largest monthly gain since Trump's election in November 2024. This was attributed to safe-haven demand for the US dollar following restrictions in the Strait of Hormuz and the resulting energy supply crisis caused by the Iran war. However, according to Bloomberg, Morgan Stanley analysis indicates that hedge funds increased their short positions on the dollar as of April 10. Anthony Foster of Nomura International noted that the initial ceasefire acted as a catalyst for dollar selling, while Ivan Stamenkovic of Bank of America stated that hedge funds are leveraging market volatility to drive dollar weakness.
*Source: v.daum.net (2026-04-15)*
