Dollar pulls back as US-Iran attacks pause, oil drops

HONG KONG : The dollar slumped against its major peers at the start of Asian trading on Monday after the US paused its bombing campaign in Iran during the weekend, prompting a drop in oil prices and boosting global investor confidence. Against the yen, the US dollar was down 0.2% at ¥163.585, its biggest decline since July 10. The euro was up 0.2% at US$1.1397, while the British pound rose by a similar magnitude to US$1.3353.

Oil prices sank in early Asian trade, with Brent crude tumbling 4.7% to US$92.19 after the US military temporarily halted its two-week long strikes. Iran will halt its own attacks as long as the US does the same, a senior Iranian official told Reuters on Sunday, following a China-led push to resume stalled diplomatic efforts in Pakistan to end the war.

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