Dollar Slumps Amid US-Iran Tensions Easing

The US dollar slipped against major currencies as the country paused its two-week bombing campaign in Iran. The pause in strikes, along with reports of resumed diplomatic efforts and continued oil exports from the Middle East, boosted investor confidence.

Oil prices plummeted nearly 5% after the temporary halt in US military strikes on Iran. Brent crude fell to around $92/bbl following a senior Iranian official's statement that Iran would halt its own attacks if the US does the same.

The dollar index, which measures the greenback against a basket of six currencies, slipped 0.25% to 101.23 at the start of a week packed with central bank meetings, including that of the Federal Reserve.