Dollar steady as markets eye US-Iran talks

NEW YORK - The dollar steadied on Friday but remained on track for a weekly loss, as markets monitored negotiations over a deal that could end the Middle East conflict.

Traders were also digesting unprecedented demand for shares in SpaceX, which raised $75 billion in an initial public offering and jumped about 25% in its Nasdaq debut.

The euro was little changed at $1.1577, hovering near a one-week high and set for a weekly gain after the European Central Bank delivered its first interest rate hike in three years on Thursday.

PEACE DEAL

Leaked terms of a proposed memorandum to end the war in the Gulf outlined by Western, Pakistani and Iranian sources on Friday appeared to favour Iran, drawing criticism from U.S. President Donald Trump, who called the reports inaccurate.

Trump's announcement of a deal on Thursday had prompted Wall Street shares to rally, oil prices to slip, and the U.S. dollar to fall.

Markets are pausing as they assess prospects for a peace deal and the impact of the SpaceX IPO, with investors watching whether funds will shift from equities or cash, said John Velis, FX and macro strategist at BNY.

"The hoped for good news on the ceasefire in the Middle East had a big reaction overnight and I think we came in this morning and we have the SpaceX IPO and a bunch of central bank meetings next week," Velis said.

The U.S. dollar was up 0.17% against Japan's currency at 160.195 yen, holding near a key level that often triggers concern about intervention from Tokyo.

The pound was steady at $1.34165. Data showing the UK economy contracted in April had little impact, with markets focused on Iran talks.

The U.S. dollar index, which measures the greenback against a basket of six currencies, was flat at 99.707 after hitting a one-week low on Thursday.

Investors have tended to buy the safe-haven dollar when tensions in the Iran war flare, and sell it in favour of riskier assets such as stocks when peace talks appear to make progress.

FED IN VIEW

Data on Thursday showed U.S. producer prices increased more than expected in May, ahead of Kevin Warsh's first rate-setting meeting as chair of the Federal Reserve next week.

Traders expect the Fed to keep rates steady at 3.5% to 3.75%, but see a greater than 50% chance of a hike by year-end. Pricing edged slightly lower on Thursday after Trump's comments on a potential deal.

Against the Swiss franc, the dollar strengthened 0.19% to 0.796 but was on track for a weekly loss.

In cryptocurrencies, bitcoin gained 0.85% to $63,882.63. Ethereum rose 0.09% to $1,672.24.

(Reporting by Chibuike Oguh in New York. Editing by Mark Potter)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 12, 2026 at 9:02 AM.