The dollar is heading to record its second weekly loss in a row

Today, Friday, the dollar is heading to record its second consecutive weekly decline amid cautious trading, as the ceasefire between Israel and Lebanon and the prospects of holding new talks with Iran have prompted investors to move slightly away from safe havens.

A ten-day ceasefire between Lebanon and Israel entered into force on Thursday, while US President Donald Trump said that a new meeting might be held between the United States and Iran at the beginning of the week.

Meanwhile, American and Iranian negotiators reduced their ambitions to reach a comprehensive peace agreement, and instead moved towards a temporary memorandum of understanding that prevents the renewal of the conflict, with the nuclear file remaining the most prominent obstacle to any final agreement.

Currencies traded within a narrow range in Asia, while investors awaited more details, which kept the euro stable against the dollar at $1.1783, with the single European currency heading for gains for the third week in a row. The British pound also traded at $1.3526.

The two currencies were able to erase most of the losses they incurred during the period of tension related to the war in Iran, approaching their highest levels in seven weeks.

The dollar index, which measures the strength of the US currency against six other major currencies, settled at 98.212, heading for a decline for the second week in a row, after demand for safe haven assets declined due to optimism related to the ceasefire.

The Australian dollar also reached $0.7163, continuing to trade near its highest levels in four years, while the New Zealand dollar fell by 0.06% to $0.5888.