The dollar index fell toward 98 on Wednesday, ending a three-day advance as growing optimism that Washington could reach a deal with Tehran reduced demand for the currency’s safe-haven appeal. Defense Secretary Hegseth said the ceasefire that began nearly a month ago remains intact, while Secretary of State Rubio confirmed that offensive operations have concluded as Washington shifts its focus to protecting shipping routes in the strait. President Trump also announced a temporary pause in a US-led effort to assist stranded vessels in exiting the Strait of Hormuz to allow time for renewed talks with Tehran. Oil prices retreated, easing inflation concerns and tempering expectations that the Federal Reserve may need to raise interest rates to arrest price pressures. Market participants now turn to ADP’s private payrolls report for April to assess labor market strength, ahead of the more closely watched monthly jobs report due Friday.