(Corrects to removes duplicate content on oil price move in bullets)
By Jiaxing Li
HONG KONG, June 15 (Reuters) - The U.S. dollar slid on Monday to a 10-day low against its major peers as news the United States had agreed to a peace deal with Iran sent oil prices tumbling and boosted demand for riskier assets.
U.S. and Iranian officials said on Sunday they have agreed on a framework for a deal to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz. Oil prices slipped, with
Brent crude futures down more than 4% to $83.82.
But caution lingered as President Donald Trump told the New York Times on Sunday if Iran failed to reach a final nuclear accord with the United States, he would restart military attacks on Tehran or make the United States "the guardian of the Middle East" in return for 20% of the region's revenues.
The euro stood at $1.1607, up 0.35% so far in Asia, and Sterling strengthened 0.3% to $1.3448.
The risk-sensitive Australian dollar fetched $0.7075, up 0.50%, while the kiwi was up 0.4% at $0.5854.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.31% to 99.492, the weakest level since June 5.
"I think we'll see the dollar fall over the course of the next few sessions. We'll probably see some of the risk currencies like Aussie and yen appreciate a little bit. But I don't think we're going to see any huge moves," said Nick Twidale, chief market strategist at ATFX Global in Sydney.
"There's going to be a lot of wait and see, on how quickly the Strait really reopens and how long it's going to take for oil flow to really get back to normal. It's certainly going to be months rather than weeks."
The Japanese yen weakened to as much as 160.150, continuing to hover around the 160 level widely seen as a line in the sand for potential official intervention.
The Bank of Japan is set to raise interest rates to a 31-year high at the two-day meeting concluding on June 16, and signal its readiness to keep pushing up borrowing costs, undeterred by the temporary absence of its governor as it focuses on countering inflation risks from the Middle East war.
The decision would align the BOJ with other central banks shifting towards tighter policy, including the European Central Bank, which delivered a much-anticipated hike on Thursday.
(Reporting by Jiaxing Li; Editing by Sam Holmes)
