HONG KONG, June 4 The dollar slipped from a two-month high on Thursday as optimism rose about a ceasefire in Lebanon, while markets were alert to the possibility of intervention as the Japanese yen hovered near the key 160 level.
Lebanese President Joseph Aoun said on Thursday that the ceasefire would come into force within 24 hours of all concerned parties approving it
Iran has said a ceasefire in Lebanon is a key stage in advancing broader peace talks. Hezbollah, however, has not yet commented on the agreement. The euro rose 0.3% to $1.164.
A Reuters poll showed that the European Central Bank is set to raise its deposit rate to 2.25% on June 11 to curb inflation. The British pound also climbed 0.3% to $1.346. The dollar index, which measures the greenback against major peers, fell 0.2% to 99.23, down from a two-month high of 99.56 reached in the previous session.