The dollar index pared its early gains and fell below 100 on Monday, as traders reacted positively to reports that Iran, the US, and a group of regional mediators are discussing a potential 45-day ceasefire that could pave the way toward ending the war. Additional reports indicating that more ships are passing through the Strait of Hormuz helped ease pressure on oil prices, offering some temporary relief. This comes amid President Trump’s threat to target Iran’s power plants starting Tuesday, while Iran continues striking energy infrastructure in neighboring Gulf countries. Investors are now awaiting a series of key economic releases that will provide further insight into the health of the economy, including the CPI report later this week and the FOMC minutes. Markets have fully priced in a pause in the federal funds rate later this month and expect borrowing costs to remain steady throughout the year.