The U.S. Dollar Index recovered toward 101.70 Tuesday amid conflicting accounts of a reported U.S.-Iran proposal involving nuclear inspections and frozen funds, leaving the prospects for renewed talks unsettled.
FXStreet reported that the index dipped to just above 101.50 before moving back toward 101.70 after an unnamed diplomat involved in the talks challenged claims that a deal was near. Investing.com's Oct. 20 daily data put the low at 101.51 but do not specify when it occurred. Reuters put the index at 101.71, down 0.25%, in a report published at 2:47 p.m. EDT (18:47 UTC).
The New Arab, citing unnamed people familiar with the mediation, reported that a proposal would give inspectors from the International Atomic Energy Agency (IAEA) confidential access to Iranian nuclear sites without advance notice. Iran would receive interest earned on $6 billion in frozen assets held in Qatar, the outlet reported. Its sources said Washington and Tehran had responded positively. The report did not describe a release of the $6 billion principal.
Qatar's Foreign Ministry said its mediation channels with Washington and Tehran remained active but announced no agreement on those terms. Iran's state news agency IRNA reported that Iranian President Masoud Pezeshkian told visiting Pakistani army chief Field Marshal Asim Munir that U.S. threats and sanctions must be lifted before talks could begin. Pezeshkian did not explicitly address the reported proposal.
Ibrahim bin Sultan Al Hashmi, director of the Media and Communication Department at Qatar's Ministry of Foreign Affairs, said escalation imposed costs on the region, the global economy and energy supplies. He said disruptions in the Strait of Hormuz would cause the greatest harm to people in the region, including Iran.
Qatar's Foreign Ministry welcomed a June memorandum of understanding between Washington and Tehran and credited Pakistan's partnership and efforts at the time. The Federal Reserve's target range for the federal funds rate stands at 3.75%-4.00%. Its next policy meeting is scheduled for Oct. 27-28.
