The U.S. dollar ticked lower on Tuesday as markets balanced conflicting signals from the Middle East against lingering optimism from softer inflation data last week. The euro rose 0.09% against the dollar to $1.1424 while the yen declined 0.09% to 162.63 yen. The U.S. military has struck Iran for ten straight nights, reigniting tensions and prompting investors to dial back hopes that the conflict would end soon, though a senior Iranian official told Reuters that Tehran had received a proposal for a 10-day ceasefire. Benign U.S. inflation data released last week had already curbed bets on further rate hikes, but questions over where prices go from here persist as the outlook hinges on shipping through the Strait of Hormuz and oil market stability. The U.S. dollar index dipped 0.05% to 100.9, while the British pound rose 0.1% to $1.3441 as Andy Burnham became Britain's seventh prime minister in a decade and reiterated his commitment to the previous government's fiscal rules.