Progress in US-Iran negotiations and a stronger-than-expected yuan fix weigh on the dollar and oil prices early Monday.
The US dollar weakened against major currencies as diplomatic progress between Washington and Tehran reduced concerns over Middle East oil supply disruptions. The PBOC set the USD/CNY reference rate at 6.8150, above the 6.7733 estimate, signaling potential yuan depreciation pressure.
Goldman Sachs reported central banks purchased 59 tonnes of gold in April, reinforcing structural demand for the metal. Meanwhile, Iran agreed to a maritime security mechanism for the Hormuz Strait, though ship traffic dropped to five vessels amid lingering tensions.
Equity futures opened lower, while oil prices edged up despite the diplomatic breakthrough. The BOJ’s hawkish tone on inflation risks and UK political uncertainty added to market caution.