The U.S. dollar softened against major global currencies as a temporary pause in military strikes between U.S. and Iranian forces eased crude oil prices and boosted broader market risk appetite. Brent crude tumbled as both sides indicated a willingness to suspend hostilities, significantly reducing immediate fears of energy supply disruptions across key shipping routes. The sharp pull-back in energy costs helped alleviate concerns over oil-driven inflation, which in turn eroded safe-haven demand for the greenback while lifting currencies such as the euro, British pound, and Japanese yen. Despite the rally in investor sentiment, market participants are exercising caution with attention shifting to a crucial week of central bank decisions. Traders are closely monitoring the upcoming U.S. Federal Reserve policy meeting for clearer guidance on interest rate expectations and how monetary policy will adapt to changing global economic conditions.
U.S. Dollar Weakens and Oil Plunges as Middle East Military Pause Shifts Market Focus to Central Banks
