Ceasefire Announcement Sparks Dollar Decline Amid Global Market Shifts

The U.S. dollar experienced a fall on Tuesday after President Donald Trump revealed a ceasefire between Israel and Iran. The announcement spurred a risk rally, leading to a sharp decline in oil prices and a ripple effect across global currencies.

Israel accepted Trump's ceasefire proposal, having reached its objective of neutralizing Tehran's nuclear threat. Consequently, currencies such as the yen and euro saw benefits from the drop in oil prices, a crucial component for the heavily import-reliant EU and Japan. The dollar's decline was further exacerbated by remarks from Federal Reserve figures discussing potential interest rate cuts.

The Federal Reserve's possible rate policy shift, combined with positive sentiment from the ceasefire, invigorated other currencies like the Australian dollar. Cryptocurrencies also saw gains, reflecting optimistic global market sentiments following the announced ceasefire.

(With inputs from agencies.)