Following news of the negotiations, the exchange rate of the dollar against the rial declined and is now trading in the 150,000 toman range. These negotiations are taking place while the United States is deploying a large fleet of warships to the region and issuing threats against Iran. Trump has warned that if no agreement is reached, bad things could happen. The United States has announced three main demands: a complete halt to uranium enrichment, restrictions on the ballistic missile program, and an end to support for proxy groups in the region. Iran considers these demands unacceptable but has declared its readiness to show flexibility on the enrichment issue, including the handover of 400 kilograms of enriched uranium and a halt to enrichment within the framework of a consortium. Iran emphasizes the removal of preconditions and the withdrawal of U.S. military assets away from its borders.

Kevin Hass, an economic adviser to Trump, believes that the Federal Reserve should focus as much as possible on reducing the size of its balance sheet. In this context, he supported the selection of Kevin Warsh and said that Trump now believes the economy has experienced a positive supply shock. Reducing balance sheet assets could lead to consequences such as higher long term interest rates and reduced liquidity.

The U.S. Bureau of Labor Statistics, BLS, announced that due to a partial federal government shutdown, the key January employment report will not be released as scheduled on Friday. Other labor market reports scheduled for this week will also be postponed. This shutdown occurred due to Congress failing to pass a budget. The January report, in addition to monthly data, was expected to include significant annual revisions to employment figures, which were anticipated to show that job growth in the year ending March 2025 was weaker than initial estimates. A new release date will be announced once government funding is secured.

The Reserve Bank of Australia became the first major central bank in 2026 to raise interest rates, increasing the rate from 3.6 percent to 3.85 percent. This decision was aimed at containing persistent inflation, which remains above the target range of 2 to 3 percent. Although the bank’s governor refrained from outlining a clear future path for rates, today’s move signals policymakers’ concerns about sustained inflationary pressures in the Australian economy. During the session, the Australian dollar strengthened following the hawkish stance of Governor Bullock.