Dollar Slumps as Oil Prices Plummet Amid Iran Conflict Pause

The US dollar retreated against other major currencies on Monday as oil prices fell due to a pause in the Middle East conflict.

Oil prices sank, with Brent crude tumbling 7.5% to $89.42 per barrel after the US military temporarily halted its two-week-long strikes.

The dollar index dipped 0.1% to 101.34 ahead of the Federal Reserve's July 28-29 policy meeting.

Jane Foley, head of FX strategy at Rabobank, said that 'It could be that the market is not particularly well-informed after this meeting because Warsh doesn't like to give forward guidance, and there is so much uncertainty, particularly with respect to how long the Iran war will last.'