When President Donald Trump sent US bombers to strike Iran's nuclear sites last weekend, he was betting he could help ally Israel cripple Tehran's nuclear program while keeping his long-standing vow to avoid entanglement in a protracted war.

The U.S. dollar fell on Tuesday while its Australian and New Zealand counterparts rose after President Donald Trump announced a ceasefire between Israel and Iran, in news that sent investors cheering and sparked a risk rally across markets.

Oil slipped and Asian equity markets rose after President Trump said Israel and Iran agreed to a cease-fire that could pave the way for the end of the war between the two countries.