The dollar index slipped below 98.5 on Monday after briefly rising to as high as 99.3 earlier in the session, as markets reacted to reports that Iran had submitted a new proposal to the US aimed at reopening the Strait of Hormuz and easing tensions. The proposal, reportedly conveyed through Pakistani mediators, calls for an extension of the ceasefire to allow progress toward a lasting settlement, while postponing nuclear negotiations until the US blockade of the strait is lifted. Earlier in the day, the dollar had strengthened after President Donald Trump cancelled plans to send senior envoys for a second round of talks with Iran, as Tehran reiterated that it would not enter negotiations under threats or blockade conditions. Meanwhile, the Federal Reserve is widely expected to leave its policy rate unchanged on Wednesday, in what could be Jerome Powell’s final meeting as chair before Kevin Warsh is anticipated to assume the role in May.