Deutsche Bank and Wells Fargo signaled a shift in sentiment on Monday, saying the dollar’s wartime safe‑haven surge is likely fading. Their view follows a tentative cease‑fire between the United States and Iran that has eased geopolitical tension. With the immediate shock absorbed, investors are moving out of the greenback and back into higher‑yielding equities and commodities in the near term.

Traders had rallied the dollar earlier this year as war risk premiums climbed, pushing the currency to multi‑year highs against the yen and euro. The cease‑fire removes one of the key catalysts, prompting fund managers to rebalance portfolios toward risk assets that were previously penalised. Currency‑hedged funds may see inflows as exposure to the greenback wanes among global investors today.

Equity markets responded with gains in technology and energy sectors, while the euro slipped against the dollar. Analysts expect the shift to tighten financing costs for U.S. exporters relying on a strong dollar to offset foreign competition. Deutsche Bank and Wells Fargo thus signal a turning point, with the greenback likely to trade in a narrower band this quarter by year-end.