{"id":65848,"date":"2026-08-02T23:38:23","date_gmt":"2026-08-03T03:38:23","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-dollar-index-dips-below-100-as-trump-resumes-iran-talks-rare-us-japan-intervention-bolsters-yen\/65848\/"},"modified":"2026-08-02T23:38:23","modified_gmt":"2026-08-03T03:38:23","slug":"us-dollar-index-dips-below-100-as-trump-resumes-iran-talks-rare-us-japan-intervention-bolsters-yen","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-dollar-index-dips-below-100-as-trump-resumes-iran-talks-rare-us-japan-intervention-bolsters-yen\/65848\/","title":{"rendered":"US Dollar Index Dips Below 100 as Trump Resumes Iran Talks; Rare US-Japan Intervention Bolsters Yen"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The US Dollar Index (DXY) fell below the 100.00 threshold<\/strong> as President Donald Trump called off a planned military strike on Iran, opting instead for fresh negotiations starting Monday.<\/li>\n<li><strong>The US and Japan conducted a rare coordinated currency intervention<\/strong> to support the Japanese Yen (<strong>JPY<\/strong>), marking the first such joint action in over a decade as the currency hit 40-year lows.<\/li>\n<li><strong>A potential US ban on Chinese AI models<\/strong> could impose a <strong>$12 billion annual cost<\/strong> on American businesses, with startups warning that a ban on &quot;open-weight&quot; models would stifle domestic innovation.<\/li>\n<li><strong>Cuba\u2019s national power grid suffered a total collapse<\/strong>, plunging the island into a complete blackout amid critical fuel shortages and aging infrastructure.<\/li>\n<li><strong>Major financial institutions issued a wave of target price upgrades<\/strong>, with JPMorgan raising outlooks for <strong>Vinci<\/strong> (<a href=\"\/stock\/DG\">DG<\/a>), <strong>BAWAG Group<\/strong> (<a href=\"\/stock\/BAWG\">BAWG<\/a>), and <strong>NatWest<\/strong> (<a href=\"\/stock\/NWG\">NWG<\/a>).<\/li>\n<\/ul>\n<h2>Geopolitical Shifts Drive Currency Volatility<\/h2>\n<p>The <strong>US Dollar Index (DXY)<\/strong> weakened to approximately <strong>99.70<\/strong> during early Monday trading following President Donald Trump\u2019s announcement that he had halted a &quot;massive attack&quot; on Iran. The shift toward diplomacy, with talks scheduled to begin today, has eased immediate fears of a major conflict in the Middle East and lowered demand for the greenback as a safe-haven asset.<\/p>\n<p>Simultaneously, the <strong>US Treasury<\/strong> and <strong>Japan&#39;s Ministry of Finance<\/strong> executed a historic joint intervention to prop up the <strong>Japanese Yen<\/strong>. President Trump described the move as a &quot;signal of friendship&quot; to help Tokyo stabilize its currency after it plummeted toward a 40-year low. Treasury Secretary <strong>Scott Bessent<\/strong> confirmed the action, stating the US would not hesitate to participate in further interventions to curb &quot;disorderly movements.&quot;<\/p>\n<h2>Tech and Energy Sector Developments<\/h2>\n<p>A new report from the <em>South China Morning Post<\/em> suggests that a US ban on Chinese artificial intelligence models could cost American companies <strong>$12 billion per year<\/strong>. Industry leaders and roughly <strong>200 startups<\/strong> have petitioned the White House to avoid a ban on Chinese open-source models like <strong>DeepSeek<\/strong> and <strong>Kimi<\/strong>, arguing that these low-cost alternatives are essential for maintaining the competitiveness of US-based AI developers.<\/p>\n<p>In the energy sector, <strong>Gerdes Energy Research<\/strong> upgraded its target price for <strong>Shell<\/strong> (<a href=\"\/stock\/SHEL\">SHEL<\/a>) to <strong>$123<\/strong>, a $6 increase reflecting the company&#39;s robust profit margins and a recently announced <strong>$3 billion share buyback program<\/strong>. Meanwhile, <strong>Cuba<\/strong> faces a severe energy crisis as its national electric utility reported a total system shutdown on Sunday, leaving 10 million people without power.<\/p>\n<h2>Analyst Upgrades and Market Moves<\/h2>\n<p>Wall Street analysts remain active with several significant price target adjustments for major global firms:<\/p>\n<ul>\n<li><strong>Piper Sandler<\/strong> raised its target for <strong>Northeast Bank<\/strong> (<a href=\"\/stock\/NBN\">NBN<\/a>) to <strong>$151<\/strong> from $145.<\/li>\n<li><strong>JPMorgan<\/strong> increased its outlook for French construction giant <strong>Vinci<\/strong> (<a href=\"\/stock\/DG\">DG<\/a>) to <strong>EUR 143<\/strong> and Austrian lender <strong>BAWAG Group<\/strong> (<a href=\"\/stock\/BAWG\">BAWG<\/a>) to <strong>EUR 192<\/strong>.<\/li>\n<li><strong>NatWest Group<\/strong> (<a href=\"\/stock\/NWG\">NWG<\/a>) saw its target price nudged higher by <strong>JPMorgan<\/strong> to <strong>790p<\/strong>, while Austrian engineering firm <strong>Andritz AG<\/strong> (<a href=\"\/stock\/ANDR\">ANDR<\/a>) was upgraded to <strong>EUR 93<\/strong>.<\/li>\n<\/ul>\n<p>These upgrades come as many European and regional US banks report stronger-than-expected net interest income and resilient loan growth despite the shifting geopolitical landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The US Dollar Index (DXY) fell below the 100.00 threshold as President Donald Trump called off a planned 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