Weaker US Dollar Boosts Risk Appetite

The US Dollar Index extended its decline, falling below the 102.00 mark amid a broad improvement in market risk sentiment. The dollar weakened against several major currencies, including the Japanese Yen and the Indian Rupee, with the latter strengthening to a level not seen in over six months.

Falling Oil Prices Ease Geopolitical Concerns

Crude oil prices extended losses as diplomatic efforts to resume US-Iran negotiations intensified, which markets interpreted as a sign of potential de-escalation in the Middle East. The sharp decline in oil prices was cited as a key factor improving risk sentiment and strengthening the inflation outlook for oil-importing nations like India.

Currency Markets Await Economic Indicators

Foreign exchange traders remained watchful of upcoming Gross Domestic Product (GDP) data from the UK and the Eurozone for fresh market direction. The policy outlooks for the Bank of England and the European Central Bank continue to be a primary focus, while the Japanese Yen firmed with some analysts noting the potential for further support from domestic policy.