The U.S. dollar held near its previous levels with a slight upward bias, amid growing uncertainty over the direction and substance of talks between Washington and Tehran.
The performance of the U.S. currency was supported by mixed statements from both sides, after Iran confirmed for a second consecutive day that message exchanges with the United States had stopped, while U.S. President Donald Trump and Secretary of State Marco Rubio insisted that contacts were still ongoing. This divergence increased investor caution and supported demand for the dollar, alongside mixed moves across financial and energy markets.
Geopolitical tensions in the region have intensified in recent weeks, adding more uncertainty to the diplomatic landscape and weighing on investor sentiment. Regional developments have also become an influential factor in the course of talks between the United States and Iran, amid conflicting reports about the level of progress achieved.
In this context, Iranian media reported that Iran’s negotiating team had temporarily halted message exchanges and indirect dialogues with the U.S. side, while other reports pointed to continued diplomatic efforts aimed at easing tensions and pushing talks forward.
Uncertainty persisted over the actual state of negotiations, after Iran’s Fars News Agency reported that message exchanges with the United States were currently suspended in order to reach a preliminary memorandum of understanding between the two sides. However, Trump denied these reports, stressing that contacts were continuing, while U.S. Secretary of State Marco Rubio renewed his confirmation that dialogue remained ongoing.
Rubio added that Iran had agreed for the first time to discuss aspects of its nuclear program that it had previously refused to put on the table, noting that this development could open the door to possible progress in the negotiations. The nuclear file remains one of the key issues under discussion between the two countries.
On the economic data front, U.S. labor market figures showed notable strength, with job openings rising to 7.618 million, above expectations of 6.860 million and marking the highest level since May 2024. The data reinforced expectations that the U.S. labor market remains resilient, which may prompt the Federal Reserve to keep its focus on inflation.
Meanwhile, Diane Swonk, chief economist at KPMG U.S., noted that the rise in job openings was mainly driven by professional and business services, while underlying indicators showed continued weakness in hiring momentum and lower quit rates, reflecting growing caution among workers about moving to new jobs.
In currency markets, the Japanese yen continued to weaken against the dollar for the fourth consecutive session, approaching 160 yen per dollar, a level investors see as a potential trigger for Japanese authorities to take action to support exchange rate stability. Japanese Finance Minister Satsuki Katayama confirmed the government’s readiness to deal with currency moves when necessary.
As for the euro, it remained largely stable against the dollar, while data showed annual inflation in the eurozone rising to 3.2% in May, driven by higher energy prices, while core inflation reached 2.5%, exceeding expectations.
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