Dollar retreats as oil slumps on pause in Middle East conflict

July 27 : The dollar dropped against other major currencies on Monday, as a pause in U.S. bombing in Iran dragged oil prices lower and lifted risk appetite ahead of a busy week of central bank meetings.Against the yen, the U.S. dollar was down 0.1 per cent at 163.645 yen, on course for its sharpest daily decline since July 10. The euro was up 0.2 per cent at $1.130, while the pound pared early gains and eased about 0.1 per cent to $1.331.Oil prices sank, with Brent crude tumbling 7.5 per cent to $89.42 per barrel after the U.S. military temporarily halted its two-week-long strikes. Tehran said it would also halt attacks if the U.S. maintained the pause, raising hopes for renewed diplomatic efforts to de-escalate the conflict.The dollar index, which measures the U.S. currency's strength aga