Geopolitical Hopes Drive Risk Appetite

Reports of a potential peace deal between the United States and Iran boosted risk sentiment across global markets, lifting Asian equities and strengthening regional currencies against the U.S. Dollar. This optimism weighed on crude oil prices, which consolidated as traders assessed the likelihood of de-escalation in the Middle East. The improved risk-on mood influenced various currency pairs, although some uncertainty about the deal's finalization was noted.

Gold Holds Gains on Weaker US Dollar

Gold prices maintained their positive momentum, trading near a multi-week high as a weaker U.S. Dollar provided support. The dollar's softness was attributed to easing safe-haven demand linked to optimism over a potential US-Iran diplomatic agreement. In India, gold prices were reported to be steady.

Japanese Yen Stable Amid Intervention Watch

The Japanese Yen traded in a tight range as investors remained on high alert for further currency intervention by Japanese authorities. The yen had previously rallied on suspected official market action, and traders continue to watch for moves by the Ministry of Finance to defend certain levels against the dollar.

Central Banks Signal Divergent Policy Paths

Market analysis highlighted differing outlooks for several global central banks. Analysts expect Norway's Norges Bank to deliver another rate hike, while Sweden's Riksbank is projected to hold rates but adopt a more hawkish tone. In contrast, soft labor data in New Zealand is seen as a factor that could limit further monetary tightening by the Reserve Bank of New Zealand.