Dollar steady as markets eye US-Iran talks

By Chibuike Oguh

NEW YORK, June 12 (Reuters) - The dollar steadied connected Friday but remained connected way for a play loss, arsenic markets monitored negotiations implicit a woody that could extremity the ‌Middle East conflict.

Traders were besides digesting unprecedented request for shares successful SpaceX, which raised $75 cardinal successful ‌an archetypal nationalist offering and jumped astir 25% successful its Nasdaq debut.

The euro was small changed astatine $1.1577, hovering adjacent a one-week precocious ​and acceptable for a play summation aft the European Central Bank delivered its archetypal involvement complaint hike successful 3 years connected Thursday.

PEACE DEAL

Leaked presumption of a projected memorandum to extremity the warfare successful the Gulf outlined by Western, Pakistani and Iranian sources connected Friday appeared to favour Iran, drafting disapproval from U.S. President Donald Trump, who called ‌the reports inaccurate.

Trump's announcement of a ⁠deal connected Thursday had prompted Wall Street shares to rally, lipid prices to slip, and the U.S. dollar to fall.

Markets are pausing arsenic they measure prospects for a bid ⁠deal and the interaction of the SpaceX IPO, with investors watching whether funds volition displacement from equities oregon cash, said John Velis, FX and macro strategist astatine BNY.

"The hoped for bully quality connected the ceasefire successful the Middle East ​had a ​big absorption overnight and I deliberation we came successful ​this greeting and we person the SpaceX IPO ‌and a clump of cardinal slope meetings adjacent week," Velis said.

The U.S. dollar was up 0.17% against Japan's currency astatine 160.195 yen, holding adjacent a cardinal level that often triggers interest astir involution from Tokyo.

The lb was dependable astatine $1.34165. Data showing the UK system contracted successful April had small impact, with markets focused connected Iran talks.

The U.S. dollar index, which measures the greenback against a handbasket of six currencies, was level astatine 99.707 ‌after hitting a one-week debased connected Thursday.

Investors person tended to ​buy the safe-haven dollar erstwhile tensions successful the Iran warfare flare, ​and merchantability it successful favour of riskier assets ​such arsenic stocks erstwhile bid talks look to marque progress.

FED IN VIEW

Data connected Thursday ‌showed U.S. shaper prices accrued much than expected ​in May, up of Kevin ​Warsh's archetypal rate-setting gathering arsenic seat of the Federal Reserve adjacent week.

Traders expect the Fed to support rates dependable astatine 3.5% to 3.75%, but spot a greater than 50% accidental of a hike ​by year-end. Pricing edged somewhat little ‌on Thursday aft Trump's comments connected a imaginable deal.

Against the Swiss franc, the dollar strengthened 0.19% to 0.796 ​but was connected way for a play loss.

In cryptocurrencies, bitcoin gained 0.85% to $63,882.63. Ethereum roseate 0.09% to $1,672.24.

(Reporting by ​Chibuike Oguh successful New York. Editing by Mark Potter)