The dollar retreated against major currencies early Monday in Asian trading after the United States paused its bombing campaign in Iran over the weekend. The move reduced immediate demand for the dollar as a traditional safe-haven asset and helped lift broader market sentiment.
Oil prices also fell sharply as traders reacted to the temporary halt in military action. With fears of a wider disruption to energy supplies easing, crude came under pressure and investors shifted toward riskier assets.
Reports pointing to renewed peace efforts added to the improvement in confidence across global markets. That calmer tone appeared to weaken defensive positioning in currency markets, contributing to the dollar’s pullback against its peers.
The market reaction highlights how quickly currencies and commodities can move when geopolitical tensions change. For now, the pause in US-Iran attacks has pushed the focus from conflict risk to a more hopeful outlook for stability, weighing on the dollar and sending oil lower.
