Dollar weakens against euro, yen as Iran talks lift risk appetite

NEW YORK, Nov 9 (Reuters) - The dollar weakened against major currencies including the euro and yen on Monday as easing concerns about an escalation in the Middle East conflict prompted investors to rotate back into risk assets following last week's selloff in artificial intelligence-linked stocks.

Sentiment improved after US President Donald Trump said on Sunday he was highly unlikely to order fresh attacks on Iran as long as diplomatic efforts continued.

The improved mood in ⁠markets also weighed on the safe-haven dollar, while Brent crude futures fell 3.4% to $94.99 a barrel.

The euro was last up 0.57% against the dollar at $1.1204.

Against the Japanese yen , the dollar weakened 0.33% to 158.01.

"One of the main issues in shorts and trading around the US dollar right now is positioning," said Enrique Diaz-Alvarez, chief economist at Ebury.

"The portion of the market that is actively trading and speculating is very long US dollar, which means it's difficult for the dollar to rally.

The dollar ⁠index , which measures the currency against six major rivals, dipped 0.37% to 101.84.

Futures imply around 82% odds the US Federal Reserve will raise rates on December 9, higher than a week earlier, according to CME Group's FedWatch tool.

The Aussie rose 0.80% to $0.6912 and New Zealand's kiwi jumped 1.29% to $0.5616, with traders also weighing the implications of too-close-to-call weekend elections in New Zealand.

From Kitco News