# Dollar drops on Middle East optimism, euro highest since 2021

> On June 24, 2025 the dollar fell and the euro reached its highest level since October 2021 after Iran and Israel announced a ceasefire. Fed Chair Powell said he still expected inflation to rise this summer. Traders said the market was unwinding its Middle East risk trade.

- Date: 2025-06-24 · published 2025-06-24T12:00:00.000Z
- Category: geopolitics · region Global · magnitude medium
- Page: https://feedsoft.ai/events/24418-dollar-drops-on-middle-east-optimism-euro-highest-since-2021
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Reduced geopolitical risk lowered safe-haven demand for the dollar, which weakened it against the euro. A weaker dollar supports dollar-priced commodities, while lower oil prices reduce energy and freight costs for feed supply chains.

## Read by commodity

- DXY: bearish ▼
- WTI: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-03-04 | [US dollar dips from multimonth highs on Middle East optimism \| Reuters](https://feedsoft.ai/events/11003-us-dollar-dips-from-multimonth-highs-on-middle-east-optimism-reuters.md) | -0.6% | +1.3% |
| DXY | 2019-06-20 | [Middle East Clashes Send Oil Sharply Higher](https://feedsoft.ai/events/12316-middle-east-clashes-send-oil-sharply-higher.md) | -1.1% | -0.8% |
| DXY | 2026-03-25 | [Gold rises over 2% on softer dollar, easing fears of higher interest rates \| Commodity News - Business Standard](https://feedsoft.ai/events/20076-gold-rises-over-2-on-softer-dollar-easing-fears-of-higher-interest-rates.md) | +0.8% | -1.4% |
| DXY | 2026-01-27 | [Crude Prices Jump to a 3-Month High on Dollar Weakness and Iran Risks](https://feedsoft.ai/events/21231-crude-prices-jump-to-a-3-month-high-on-dollar-weakness-and-iran-risks.md) | +0.3% | -0.1% |
| DXY | 2026-04-10 | [Dollar set for weekly drop ahead of US-Iran peace talks](https://feedsoft.ai/events/11159-dollar-set-for-weekly-drop-ahead-of-us-iran-peace-talks.md) | -0.5% | -0.7% |
| WTI | 2025-06-30 | [Oil prices fall on easing Middle East risks](https://feedsoft.ai/events/24130-oil-prices-fall-on-easing-middle-east-risks.md) | +2.0% | -0.5% |
| WTI | 2018-10-31 | [OPEC oil output rises to highest since 2016 despite Iran - Reuters survey](https://feedsoft.ai/events/62453-opec-oil-output-rises-to-highest-since-2016-despite-iran-reuters-survey.md) | -6.0% | -24.2% |
| WTI | 2026-03-25 | [Gold rises over 2% on softer dollar, easing fears of higher interest rates \| Commodity News - Business Standard](https://feedsoft.ai/events/20076-gold-rises-over-2-on-softer-dollar-easing-fears-of-higher-interest-rates.md) | +10.2% | +1.3% |

## Sources

- reuters.com: https://www.reuters.com/world/africa/dollar-falls-broad-risk-rally-after-trump-announces-israel-iran-ceasefire-2025-06-24/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.