Dollar Retreats as Oil Prices Fall Amid Iran Hostility Pause

The US dollar retreated against major currencies on Monday as oil prices fell following a pause in US-Iran hostilities. The dollar dropped 0.1% against the yen, while the euro and pound rose by 0.2% and 0.1%, respectively.

Oil prices sank by 7.5% to $89.42 per barrel after the US military halted its strikes in Iran. Tehran also announced it would halt attacks if the US maintained the pause, raising hopes for renewed diplomatic efforts.

The dollar index dipped 0.1% to 101.34 ahead of this week's Federal Reserve policy meeting. Traders see a 33% chance of a quarter-point Fed rate hike on Wednesday, down from 37% last week but double the probability seen a week ago.