Israel warns, White House pushes
Israel's Prime Minister, Benjamin Netanyahu, announced an intensification of attacks on Hezbollah, reports Bloomberg.
Iran, on the other hand, demands that the war in Lebanon cease as part of a peace agreement with the United States.
"On Saturday evening, Netanyahu spoke with U.S. President Donald Trump about a possible agreement with Iran and stated that Trump "confirmed Israel's right to defend itself against threats on all fronts, including in Lebanon." Netanyahu also added that he and Trump agreed that a final agreement with Iran "must eliminate the nuclear threat," the report said.
This information came from the Middle East shortly after Donald Trump said that talks with Tehran on ending the war were "proceeding successfully".
"Axios reported that the draft of a potential agreement between the United States and Iran "includes provisions" regarding the end of the war between Israel and the Iran-backed Hezbollah in Lebanon," Bloomberg said.
Last week, the U.S. President said that if negotiations fail, the White House will take actions that "will be somewhat unpleasant."
"Let's hope it doesn't happen," he added.
More on this was written in the article: Dollar rate changes direction? Sparks between the U.S. and Israel. Trump: "We'll see what happens."
As analysts from Crédit Agricole inform, the Middle East conflict continues to play a key role in U.S. dollar trading.
"For most investors in the currency market, the main role of the U.S. dollar remains to serve as a safe haven," they said.
"This role became particularly important since the start of the conflict in Iran, as risk aversion was driven by geopolitical threats, aligning with a sharp rise in global energy commodity prices," they added.
Economists emphasized that the period of uncertainty in global markets has driven demand for U.S. dollar assets as a safe haven among cautious investors and U.S. dollar liquidity among energy commodity importers.
We expect that prospects for global energy prices and geopolitical risk sentiment will remain key factors influencing the dollar rate in the near future — they summarized.
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Dollar and euro rates on Tuesday, May 26
The dollar to zloty rate on Tuesday, May 26 is at 3,64 PLN (+0.2%).
Chart. Dollar to zloty rate (USD/PLN)
Source: Trading Economics.
The euro to dollar rate reaches 1,16 USD (-0.13%).
Chart. Euro to dollar rate (EUR/USD)
Source: Trading Economics.
Read also: Dollar rate before a breakout? Expert: "Capital will flow back to USD"
See also: Dollar rate before a "nervous and dynamic" move, euro waiting for a drop? Expert issued a forecast for USD/PLN and EUR/USD
