Dollar Holds Tight Range as Traders Eye Iran Peace Talks, Yen Near 160

The dollar index was flat at 99.216 on Tuesday, stuck in a narrow band as investors awaited signs of progress in U.S.-Iran negotiations that could ease energy supply risks. The index has traded between 98.9 and 99.5 since May 15, with safe-haven demand muted by cautious optimism over a potential deal to reopen the Strait of Hormuz. The euro slipped 0.03% to $1.1629 despite euro zone inflation data reinforcing bets on a quarter-point European Central Bank rate hike this month. The yen weakened to 159.920 per dollar, hovering near the 160 level that analysts flagged as a trigger for Japanese intervention. Bank of Japan Governor Kazuo Ueda speaks on Wednesday, with markets watching for signals on a rate hike next week. Bitcoin slumped 5.8% to $67,213.42, its lowest since April. U.S. job openings rose to 7.618 million in April, bolstering expectations that the Federal Reserve’s next move will be a rate increase. Traders now await Friday’s non-farm payrolls report for further direction.