The US dollar index eased to 101.2 from the 14-month high of 101.8 on June 24th as lower inflationary risks drove the market to scale back the magnitude of rate hikes expected by the Federal Reserve.
US and Iran were set to resume peace talks after halting their recent attacks.
This added continuity to increasing flows of tankers from the Persian Gulf following the memorandum of understanding signed by both countries, making crude oil prices retreat toward their pre-war levels.
Higher energy costs had driven multiple FOMC members to project multiple rate hikes by the central bank this year, aligned with evidence of traction in core inflation.
The strength of the greenback was also owed to evidence of a robust labor market, set to be tested again with this week's jobs report.
In the meantime, hawkish monetary turns were also tamed by other G10 central banks, including the ECB and BoJ, which have already raised interest rates to counteract accelerating prices.