The US Dollar Index slips below 98.50 as Iran proposes a deal to the United States to reopen the Strait of Hormuz.

• The US Dollar Index (DXY) edges lower, trading near 98.45 during Monday’s early Asian session.
• The decline comes after Iran proposed a deal to the United States to reopen the Strait of Hormuz.
• Investors are now focusing on the Federal Reserve’s interest rate decision, scheduled for Wednesday.

The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, is hovering around 98.45 during Monday’s Asian session. The index is under slight pressure following reports that Iran has put forward a proposal to the United States aimed at reopening the Strait of Hormuz.

According to Bloomberg, Iran’s latest proposal includes delaying nuclear negotiations while extending the ceasefire to allow both sides to work toward a more lasting resolution to the conflict. Optimism around a potential de-escalation in US–Iran tensions and broader stability in the Middle East could weigh on the US Dollar against its peers.

However, on Sunday, US President Donald Trump instructed Jared Kushner and Steve Witkoff to cancel their planned visit to Pakistan—currently mediating talks—remarking that Iran’s offer was “substantial, but insufficient.”

Meanwhile, market attention is firmly shifting to the Federal Reserve’s policy decision due on Wednesday. The central bank is widely expected to hold interest rates steady in the 3.50%–3.75% range, where they have remained since January. Analysts at Deutsche Bank suggest that any shift toward a more hawkish policy outlook—particularly if driven by sustained oil-related inflation—could provide support for the DXY.