The dollar dropped versus most major peers as geopolitical developments increased appetite for riskier assets.

The Bloomberg Dollar Spot Index halves a 0.3% drop which came at the back of hopes for a solution to the war in Ukraine; investors also awaiting clarity around possible reciprocal tariffs.

The euro led Group-of-10 gains earlier as it rose by as much as 0.6% to $1.0440, one-week high; while it pares gains, it's still headed for a third daily advance, longest winning streak this year.

USD/CHF down 0.7% to 0.9071, lowest since Feb. 7; Switzerland's inflation rate hit the lowest level in almost four years after the country saw widespread power-price cuts at the start of the year.

GBP/USD rallies by 0.6% to 1.2517, more than one-week high, before paring the advance; cable built on earlier gains after data showed the UK economy unexpectedly expanded 0.1% in the fourth quarter; economists forecast a 0.1% contraction.

USD/JPY down 0.3% to 153.90; it trails other G-10 peers as traders saw leveraged buying on dips.

Source: Bloomberg