The greenback slipped after Washington and Tehran signed a two‑week ceasefire, driving the dollar down about 0.9% to a four‑week trough. Treasury yields fell in tandem, stripping the currency of its safe‑haven appeal. Traders shifted toward riskier assets, lifting equities and commodities while the greenback lost ground across the board.

Risk‑sensitive currencies bore the brunt, with the South African rand and South Korean won sliding against the U.S. unit. In contrast, China’s yuan surged to a three‑year high, buoyed by the People’s Bank of China’s strongest daily fixing in a month. The New Zealand dollar also rose after its central bank hinted at a possible rate hike.

The ceasefire promises safe passage for tankers through the Strait of Hormuz for two weeks, easing a key supply choke point that has kept oil prices elevated since the conflict began in late February. With more crude expected to flow, the dollar’s war‑driven rally—fueled by higher oil revenues for the United States—has lost momentum.

National Australia Bank strategist Rodrigo Catril summed up the market shift: a risk‑positive environment pushes the dollar lower while equities climb. Investors will now watch vessel traffic data to gauge any lingering inflationary pressure from the brief conflict. The immediate effect is a broader weakening of the greenback across major currency pairs.