Dollar Softens as Oil Prices Plummet Amid Iran Pause

The US Dollar softened on Monday as Oil prices plunged following a temporary pause in hostilities between the United States and Iran.

The US Dollar Index (DXY) fell slightly to 101.40, closing out the session near breakeven after being lower earlier in the day.

The drop in Oil prices eased energy-driven inflation concerns and supported risk-sensitive currencies ahead of a busy week of central bank decisions.

Investors are preparing for the Federal Reserve's (Fed) two-day monetary-policy meeting, where markets largely expect the Fed to maintain its target range at 3.50%-3.75%, but with interest rate increase possibilities still in focus due to persistent inflation concerns.