SINGAPORE: The dollar slipped at the start of Asian trading on Monday as ​hopes of a ⁠deal to reopen the Strait of Hormuz pushed oil prices below $100 ‌per barrel, even as the Trump administration played down the chances of reaching an agreement with ​Iran soon.

Against the yen, the U.S. dollar was down 0.2% at 158.87 yen, while ​the euro ​rose 0.3% to $1.1642 and the British pound gained 0.4% to $1.3485.

Many global markets are closed for holidays on Monday, thinning liquidity across the region.

The ⁠Australian dollar advanced 0.4% to $0.7160, while its kiwi counterpart tacked on 0.5% to $0.5877.

"There are early signs that risk sentiment remains supported, early Sydney trade revealing a broad-based selloff in the USD, with ‘riskier’ currencies like the AUD benefitting ​as a result," ‌analysts from Westpac ⁠wrote in a ⁠research note.

Over the weekend, hopes for a lasting peace deal appeared fragile. U.S. President ​Donald Trump wrote on Saturday that a memorandum of ‌understanding on a peace deal with Iran ⁠had been "largely negotiated," with both countries and mediators in Pakistan reporting progress.

However, the U.S. blockade on Iranian ships in the Strait of Hormuz would "remain in full force and effect until an agreement is reached, certified, and signed," Trump wrote on Truth Social on Sunday. There was no immediate response from Iran's government.

Oil markets tumbled, as Brent crude prices fell 5.1% to $98.29 a barrel while U.S. West Texas Intermediate was at $91.76 a barrel, off ‌5%.

Traders expressed cautious scepticism over whether a deal would stick.

"Markets ⁠have become conditioned to be incredibly patient on a ​tangible breakthrough, but the base case of a deal remains firm, with the weekend news providing further conviction, even if the timing remains unclear." said Chris ​Weston, head ‌of research at Pepperstone Group Ltd in Melbourne.

Bitcoin was up ⁠0.6% at $77,043.60, while ether was 0.4% ​higher at $2,099.77. (Reporting by Gregor Stuart Hunter Editing by Shri Navaratnam)