Dollar Retreats as US Pauses Strikes in Iran, Oil Prices Tumble
The US dollar retreated against its major peers at the start of Asian trading on Monday after the US paused its bombing campaign in Iran, leading to a decline in oil prices and boosting global investor confidence.
Oil prices dropped sharply in early trade, with Brent crude plummeting 4.7% to $92.19 after the US military temporarily halted its two-week-long strikes.
A senior Iranian official told Reuters that Iran would halt its own attacks as long as the US does the same, following a China-led push to resume stalled diplomatic efforts in Pakistan to end the war.
The dollar index slipped 0.25% to 101.23 at the start of a week packed with central bank meetings, including that of the Federal Reserve, which has seen traders increase their bets on a potential interest rate hike.