Dollar Weakens Amid Middle East Ceasefire Hopes

The US Dollar softened against major currencies on Monday as oil prices plummeted following reports of a potential ceasefire pause in the Middle East.

Brent crude futures fell by over 3% during early trading, driven by hopes that a temporary halt in hostilities could ease supply disruptions and reduce geopolitical risk premiums.

The decline in oil prices typically reduces demand for the US Dollar as a safe haven, while also easing inflation concerns that had supported the currency in recent weeks.

The Dollar Index (DXY) slipped to a session low of 104.20, as the euro, yen, and commodity-linked currencies like the Australian and Canadian dollars all gained ground.