SINGAPORE, June 24 — The dollar fell today while the Australian and New Zealand dollars rose after US President Donald Trump announced a ceasefire between Israel and Iran, in news that sent investors cheering and sparked a risk rally across markets.
Trump said that a "complete and total" ceasefire between Israel and Iran will go into force with a view to ending the 12-day conflict between the two nations, moments after both sides threatened new attacks.
An Iranian and Qatari official confirmed that Tehran had agreed to a ceasefire, while Israel's Channel 12 reported that Prime Minister Benjamin Netanyahu had agreed in a conversation with Trump to a ceasefire as long as Iran stopped its attacks.
The risk-sensitive Aussie got a lift from the news and last traded 0.35 per cent higher at US$0.6483 as did the kiwi, which rose 0.37 per cent to US$0.5998.
"It's obviously positive news for risk sentiment," said Rodrigo Catril, senior currency strategist at National Australia Bank.
"We need to obviously have a bit more details in terms of exactly what all this means ... I suppose it will be the conditions of the ceasefire, and what are the conditions for a more longer-lasting peace deal."
The dollar, which last week drew support from safe-haven demand, fell broadly in the wake of the news.
Against the yen, the greenback was down 0.21 per cent at 145.79.
The euro rose 0.21 per cent to US$1.1602 and sterling advanced 0.18 per cent to US$1.3551.
Adding to headwinds for the dollar were dovish comments from Federal Reserve policymaker Michelle Bowman, who said the US central bank should consider interest rate cuts soon.
Bowman's openness to cutting rates soon is supported by Fed Governor Christopher Waller, who said in a television interview last week he'd also consider a rate cut at next month's meeting.
— Reuters
