The U.S. dollar softened slightly as markets reassessed mixed signals from President Trump regarding the timeline of the Middle East conflict.

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Earlier optimism about a quick end to the war boosted the dollar, but continued heavy strikes on Iran and uncertainty about the Strait of Hormuz blockade cooled that sentiment. As a result, the Dollar Index slipped to around 98.7.

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Oil prices also pulled back sharply from recent highs, easing some of the inflation concerns tied to energy markets. The shift in sentiment helped risk assets stabilize — the euro and pound held steady, while the Australian dollar and Mexican peso gained.

Meanwhile, Bitcoin edged up about 1% near $69.9K as investors cautiously returned to risk assets.

Markets remain highly sensitive to developments in the Middle East, meaning currency, oil, and crypto volatility could stay elevated in the near term.

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