Dollar Weakens as US-Iran Truce Sparks Risk Rally, Currency Traders Eye Fed Showdown

The US Dollar Index fell to 101.20, down 0.25%, as a sudden pause in US-Iran military strikes over the weekend triggered a sharp risk-on reversal. Markets moved from "duck and cover" to "buy everything" overnight, with the greenback shedding safe-haven bids across the board. "The moment the shooting stopped, the dollar started sinking" noted one FX desk, as traders pivoted to higher-yielding assets.

Euro, Aussie, and Rupee Surge on Risk...