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DXY slips as Middle East risk sentiment improves and crude prices fall

The US Dollar Index was down 0.1% to 99.7, while crude dragged lower amid expectations for reduced Iran-strike risk.

Reported · Written up by our desk · Major Pairs

FXStreet said market sentiment improved on Monday after weekend Middle East developments that are expected to weigh less on the outlook for Iran strikes. That calmer risk tone reduced demand for safe havens, pressuring the US Dollar Index (DXY).

At the time of writing, FXStreet reported the DXY was down 0.1% on the day to 99.70. The outlet also linked the shift to weaker demand for the dollar as investors became more willing to step toward riskier assets.

FXStreet added that the broader “risk-on” versus “risk-off” dynamic typically supports different FX patterns, with safe-haven currencies such as the US dollar, the Japanese yen, and the Swiss franc tending to benefit when risk is elevated.

The report also connected the improved risk tone to lower crude prices, noting that softer oil can accompany a less defensive positioning in global markets.

Latest closeWTI crude $86.80 ▲3.8%|Dollar index 99.80 ▼0.2%

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