Dollar drops amid US-Iran ceasefire

The dollar fell, while the euro and yen rallied on Wednesday after U.S. President Donald Trump agreed to a two-week ceasefire with Iran.

The dollar sank to its lowest level in a month while the euro, yen, Aussie and kiwi rallied hard in Asian trading after the U.S. leader said he had agreed to a two-week ceasefire with Iran.

The yen strengthened 0.7% against the greenback to 158.50 per dollar. The euro was up 0.7% at $1.1677, while the British pound appreciated 0.8% to $1.3403.

Investors’ risk appetite rapidly returned after the ceasefire announcement, less than two hours before Trump’s deadline for Tehran to reopen the Strait of Hormuz would have expired.

The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, weakened for a third consecutive day to 98.943, the lowest since March 11.