The dollar index dipped to a seven week low under 98 mark on Thursday amid improved market sentiment, supported by expectations of a potential de-escalation in the Middle East conflict. US President Donald Trump stated that the war was “close to over.” However, the US Producer Prices Index (PPI) data from March, released on Tuesday, confirmed that the war in Iran has boosted inflationary pressures, although the PPI rose below expectations in March, easing pressure on the US Federal Reserve (Fed) to raise interest rates immediately. The Dollar Index, which measures the value of the USD against a basket of six peers, trades under 98.00 at the time of writing, its weakest level since the war in the Middle East started on February 28. The USD Index has lost nearly 1% this week so far, and is more than 2% lower since the ceasefire was announced last week.