The dollar nursed losses on Tuesday as markets clung to hopes for a Middle East peace deal to reopen the Strait of Hormuz and end the Iran war.
Iran's top negotiator and foreign minister met Qatar's prime minister in Doha. US President Donald Trump said talks were going "nicely" but warned of fresh attacks if they failed.
The euro held at $1.16365, while the yen traded at 158.95. The dollar index stood at 99.031.
Charu Chanana, chief investment strategist at Saxo in Singapore, said: "Markets are right to price some optimism because even a path toward reopening Hormuz lowers extreme tail risks around oil, inflation and global growth."
Analysts do not expect energy prices to return to pre-war levels anytime soon.
