US Dollar Softens as Oil Plunges Amid Middle East Pause

The US Dollar Index (DXY) slipped early in the session but recovered to near breakeven by late trading, as a pause in hostilities between the United States and Iran eased geopolitical risk.

Oil prices plunged on the news, removing a key source of inflationary pressure and reducing the appeal of the dollar as a safe haven. Markets assessed the de-escalation as a potential turning point for energy markets.

Currency pairs remained rangebound with no clear directional catalyst beyond the headline-driven swings.