SINGAPORE, April 8 (Reuters) - The dollar sank to its

lowest level in two weeks at the start of trading in Asia on

Wednesday, while the euro, yen, Aussie and kiwi rallied hard

after U.S. President Donald Trump said he had agreed to a

two-week ceasefire with Iran.

The yen strengthened 0.6% against the greenback to

158.68 yen per dollar. The euro was up 0.7% at $1.167,

while the British pound appreciated 0.7% to $1.3385. The

Australian dollar climbed 1.3% to $0.7068 as its New

Zealand counterpart jumped 1.4% to $0.5810.

Trump had earlier threatened widespread attacks on Iran's

civilian infrastructure. Markets turned risk-on after the

announcement, less than two hours before his deadline for Tehran

to reopen the Strait of Hormuz expired.

The U.S. dollar index, which measures the greenback's

strength against a basket of six currencies, was down 1.0% at

98.97, a two-week low. Cryptocurrencies also rallied, with

bitcoin advancing 3.4% to $71,664.41, as ether

surged 5.7% to $2,234.78.