Dollar slides, oil drops as US and Iran halt attacks

The US dollar lost ground against major currencies on Monday as military operations between the United States and Iran were halted and oil prices fell. The easing of US-Iran tensions and expectations of a diplomatic path encouraged investors to return to riskier assets, according to market movements. The euro rose 0.1 percent against the dollar, and the Japanese yen also strengthened against the greenback, while the British pound edged slightly lower. Brent crude dropped 7.5 percent to $89.42 a barrel after the US and Iran announced that their mutual strikes had stopped. The decline in crude prices supported the broader recovery in risk appetite as markets priced in the prospect of diplomacy taking precedence over military action. Uncertainty over US monetary policy ahead of the Federal Reserve's meeting later this week also weighed on the dollar. Market participants said they were watching the Fed's policy decision and a slate of major economic data releases for further direction on interest rates.