Dollar Falls as US-Iran Tensions Ease Ahead of Fed Decision

The US dollar index fell to 101.20 on Monday as investors focused on central bank meetings, particularly the Federal Reserve's policy decision.

The easing of tensions between the US and Iran weighed on oil prices and lifted global risk appetite, reducing demand for the safe-haven greenback.

The US dollar weakened against major currencies, including the Japanese yen, euro, and sterling. The euro gained 0.37 percent to $1.1410, while sterling rose 0.23 percent to $1.3355.

Investors are increasingly betting that a decline in energy prices will help ease inflationary pressures, which had strengthened expectations for tighter monetary policy.