The US dollar weakened on Monday against several Latin American currencies as investors weighed easing tensions in the Middle East and awaited a series of major central-bank meetings. The Mexican peso led regional gains, while the Chilean peso rallied, driving the greenback below CLP940 and as far as CLP935 in late trading, its lowest level of the year, according to local market data. Brazilian and Colombian equity benchmarks also firmed, and Mexico’s S&P/BMV IPC erased early losses to finish modestly higher. Traders attributed the move to expectations that the Federal Reserve will leave interest rates unchanged later this week, alongside similar hold-calls for the European Central Bank and Bank of England. Diminishing concern that the Israel–Hamas conflict could escalate further reduced demand for the dollar as a safe-haven asset. The US currency told a different story in traditional havens, firming against the Japanese yen and Swiss franc. The yen weakened to roughly ¥145 per dollar on Tuesday morning in Tokyo ahead of the Bank of Japan’s policy announcement. After the BOJ left its ultra-loose stance unchanged, the dollar steadied while the yen remained volatile around the 145 level. With geopolitical risks still simmering and key rate decisions imminent, currency markets are likely to stay sensitive to any shifts in Middle East developments or signals from global central banks on the outlook for monetary policy.