The dollar slid Tuesday after a drop in US inflation dented expectations of an interest rate hike later this month.
Oil prices had jumped sharply on fresh Iran-US strikes, with two ships struck overnight near the Strait of Hormuz.
But those gains faded during the day, with US President Donald Trump reversing course on plans to impose a 20 per cent levy on ships transiting the key waterway.
The spike in oil prices over recent days, according to the global report on Tuesday, had renewed concerns about inflation and the need for the US Federal Reserve to hike interest rates.
But the latest data showed US consumer inflation dipped in June thanks to a drop in energy prices, which sent the dollar lower as traders saw less likelihood of a hike by the Fed later this month.
