The US Dollar Index fell for the sixth straight trading session. The greenback gave up earlier gains after President Donald Trump stated that Iran had reached out to engage in peace talks. Most G-10 currencies advanced, with the exception of the Japanese yen.

The Bloomberg Dollar Spot Index declined 0.2% on Monday, following a 1.4% drop the previous week, which was its largest weekly loss in nearly three months. The index had initially risen as much as 0.5% after the United States began a maritime blockade in the Strait of Hormuz.

This marks the longest losing streak for the index since March 2024, with a cumulative decline of 1.6%. The yield on the 10-year US Treasury note initially rose 4 basis points to 4.36% as West Texas Intermediate crude oil surged over 9%, but ultimately closed nearly 3 basis points lower.

"We received a call today from the right people, the appropriate individuals, who wish to move forward with an agreement," Trump stated at the White House, without specifying the identity of the callers.

The euro advanced 0.3% against the dollar to 1.1762, notching its sixth consecutive day of gains. Commerzbank noted that the euro holding above 1.17 suggests most market participants anticipate the recent escalation in the Middle East will "ultimately lead to de-escalation."

The dollar/yen pair rose for the third successive day, climbing as much as 0.37% to an intraday high of 159.86 before paring gains to trade at 159.41. The pair's high for the year remains 160.46, last reached on March 30.

Sterling gained 0.3% against the dollar to 1.3507, returning to levels last seen in the final week of February, before the outbreak of the Iran conflict. The Norwegian krone outperformed other G-10 currencies, buoyed by rising oil prices.

The US dollar fell against the Canadian dollar for the fifth time in the past six sessions, trading at 1.3791, below its 200-day moving average of 1.3818.