The US dollar is on track for its biggest weekly decline since January, as investors unwind safe-haven positions amid growing optimism that a ceasefire in the Gulf will allow oil shipping to resume normally.
Since the ceasefire agreement was reached on Tuesday, traders have been rapidly exiting defensive bets, putting pressure on the dollar.
The euro has gained strongly this week, breaking above its 200-day moving average to trade at $1.1694. The decisive move through this key technical level has opened the door for further upside in the single currency.