Singapore: The US dollar weakened against major currencies in Asian trading on Monday after the United States paused its military strikes on Iran over the weekend, easing geopolitical concerns and pushing oil prices lower.The dollar fell 0.2% against the Japanese yen to 163.585, marking its biggest decline since 10 July. The euro rose 0.3% to $1.1403, while sterling gained 0.2% to $1.3352.Oil prices also retreated sharply, with Brent crude falling 4.2% to $92.74 a barrel after the US military halted its two-week bombing campaign.Analysts at MUFG said markets remained focused on developments in the US-Iran conflict and the direction of oil prices.“While it is difficult to know for sure how things will pan out, our base case remains for de-escalation over time for several reasons and as such for oil prices to decline,” the bank said in a research note.Elsewhere in currency markets, the New Zealand dollar rose 0.1% to $0.5791, while the Australian dollar gained 0.1% to $0.6996.The US Dollar Index, which measures the greenback against a basket of six major currencies, was little changed at 101.21.Investors are also focusing on a busy week for central banks, including the US Federal Reserve's policy meeting.Expectations of a US interest rate increase eased slightly. According to CME Group's FedWatch Tool, markets are pricing in a 33.7% probability of a 25-basis-point rate hike at the Federal Reserve's meeting ending on Wednesday, down from 37.4% on Friday.In cryptocurrency markets, bitcoin rose 1% to $65,286.74, while ether gained 1.7% to $1,945.22.
