Amidst uncertainty in the Middle East, the dollar slightly fell in cautious trading.

The US dollar slipped slightly against a basket of currencies. Investors remain somewhat optimistic about progress towards a US-Iran peace agreement, which could lead to the reopening of the Strait of Hormuz. However, they remain cautious after the US attacked targets in southern Iran on Monday, with US military officials describing it as a defensive strike. If negotiations stall, the dollar may turn higher. Analysts at Deutsche Bank stated in a report, "For some time now, the pace towards peace has always been taking three steps forward and one or two steps back." However, the latest US action is "a warning that ceasefire is fragile." The DXY US dollar index fell 0.2% to 99.073. The index is still above the 11-day low of 98.915 set on Monday.