Dollar Weakness Spreads as US-Iran Tensions Ease

The US dollar weakened against major currencies in Asian trading on Monday after the United States paused its military strikes on Iran over the weekend. This easing of geopolitical tensions pushed oil prices lower.

Brent crude fell by more than 4% to $92.74 a barrel, while the greenback declined 0.2% against the Japanese yen to 163.585. The euro rose 0.3% to $1.1403, and sterling gained 0.2% to $1.3352.

Analysts at MUFG believe that markets are focused on developments in the US-Iran conflict and oil prices. They note that 'it is difficult to know for sure how things will pan out,' but expect de-escalation over time, which would lead to lower oil prices.