New Delhi, April 8 -- The dollar fell against all its major peers after the US and Iran agreed to a two-week ceasefire, sapping demand for the currency as a haven.

Bloomberg's gauge of the greenback slid as much as 0.9% to a four-week low as the agreement drove down Treasury yields, further trimming demand for the currency. The dollar weakened the most against its risk-sensitive counterparts such as the South African rand and South Korean won.

Iran said the ceasefire agreement meant it would guarantee safe passage for vessels through the Strait of Hormuz for two weeks, helping ensure a greater supply of oil to global markets.

"The path of least resistant is a risk positive one and favours the dollar down, and risk assets up," said Rodr...