Dollar holds near lowest levels in a week

The U.S. dollar index slid 0.1% to an intraday low of 98.95, its ​weakest level since May 18

The dollar held around its lowest levels in a week in Asian trading on Monday as hopes of a deal to ​reopen the Strait of Hormuz pushed oil prices below $100 per barrel, even as the ‌U.S. played down the chances of reaching an agreement with Iran soon.

Against the yen, the U.S. dollar was down 0.2% at 158.9 yen, while the euro added 0.3% to $1.1636.

Many markets across the world are closed for holidays on Monday, thinning liquidity.

The Australian dollar rose 0.5% at $0.7162, while the NZ dollar tacked ⁠on 0.4% to $0.5869.

There are early signs that risk sentiment remains supported, early Sydney trade ​revealing a broad-based selloff in the USD, with ‘riskier’ currencies like the AUD benefitting as ​a result, analysts from Westpac wrote in a research note.

The U.S. dollar index slid 0.1% to an intraday low of 98.95, its ​weakest level since May 18.

Oil markets tumbled on hopes of a peace ​deal, with Brent crude prices down 5.4% to $97.91 a barrel.

Over the weekend, there were conflicting signs on a peace deal. The U.S. president said on social media on Saturday that a memorandum of understanding on a peace deal with Iran had been largely negotiated, with both countries and mediators in Pakistan ​reporting progress.

In the ⁠markets, there was cautious optimism that a deal would eventually be reached.

Markets have become conditioned to be incredibly patient on a tangible breakthrough, but the base case of a deal remains firm, with ⁠the weekend ​news providing further conviction, even if the timing ​remains unclear, said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne.