Dollar recovers on Middle East ceasefire hopes after sharp decline

The U.S. dollar rebounded in Friday trading after steep losses the previous day, as investors weighed reports of a possible deal to end conflict in the Middle East. The currency moved higher in early sessions after U.S. President Donald Trump scrapped planned strikes on Iran and signaled that an agreement could be signed early next week. The dollar rose 0.1% to 160.07 yen, while the Australian dollar slipped 0.1% to $0.7045 and the New Zealand dollar fell by the same margin to $0.5830. The euro held near its weekly high at $1.1576 after the European Central Bank raised interest rates for the first time in three years on Thursday. The British pound was steady at $1.3414. Brent crude fell 1.6% to $88.94 a barrel as Asian trading resumed, with sentiment shaped by Trump's comments. Trump said a deal between the United States and Iran was possible early next week and could reopen the Strait of Hormuz to maritime traffic. Iran, however, said no final decision had been reached.