Dollar Softens as Oil Prices Plummet Amid Iran Conflict Pause

The US dollar softened on Monday as oil prices plummeted after a temporary halt in US bombing in Iran. The pause led to a decrease in risk appetite, but a recovery in bond yields offered some support to the currency.

The euro rose 0.1 percent to $1.1374, while the USD slipped 0.1 percent to 163.69 yen. The pound pared early gains and traded about 0.1 percent lower at $1.3308.

Brent crude tumbled 7.5 percent to $89.42 per barrel after the US military temporarily halted its two-week-long strikes. Tehran said it would also halt attacks if the US maintained the pause, raising hopes for renewed diplomatic efforts to de-escalate the conflict.