The preliminary agreement between Washington and Tehran triggers a dip in the dollar amid thin market liquidity.
A ceasefire memorandum of understanding between the US and Iran has weighed on the USD in early Asia trading, with the greenback marked lower in thin volume. The deal, set to be signed Friday, excludes Iran’s missile program and imposes a 30-day deadline for Hormuz Strait access, according to reports.
The PBOC set the USD/CNY reference rate at 6.8088, above the estimated 6.7544, while oil futures fell 3% on the news. US equity index futures edged higher, with ES and NQ contracts up 0.7% and 1% respectively, as June contracts near expiry.
Markets remain cautious as Trump threatens to resume strikes if terms are violated, while European allies demand unconditional Hormuz access. South Korea’s won received support after reports of US coordination to stabilize the currency.