Dollar Slides as Oil Prices Plummet Amid Middle East Conflict Pause

The US dollar declined against major currencies on Monday as a pause in US bombing in Iran led to lower oil prices and increased risk appetite ahead of a busy week of central bank meetings.

Oil prices fell sharply, with Brent crude tumbling 7.5% to $89.42 per barrel after the US military temporarily halted its two-week-long strikes. The euro rose 0.1% to $1.1374, while the dollar slipped 0.1% to 163.69 yen.

Riskier assets rebounded as investors became more optimistic about a potential de-escalation of the conflict in the Middle East.

Despite the dollar's softer tone, it maintained some support due to the relatively smaller decline in US yields compared to other markets.