The US dollar held near its lowest level since early March against major currencies, as the White House’s optimism over a peace deal with Iran buoyed sentiment and encouraged traders to shed safe-haven positions, reports Reuters.

The dollar index, which measures the currency’s strength against six major peers, was steady at 98.018. It declined for eight straight sessions through to give up most of the gains sparked by the war, as a tentative ceasefire revived appetite for riskier currencies.

“Markets are now basically looking past the conflict and pricing that there’s going to be some kind of settlement,” said Khoon Goh, the head of Asia research at ANZ.

“As markets are pricing out the war premium, we could see the dollar coming under further pressure and resuming the downtrend that has been established since basically last year.”

A break below the 98 level, a key near-term support, could open up potential for further downside, he said. The index is down 0.7 per cent for the week, poised for its second straight week of declines.