Thin liquidity in Asian markets amplifies the dollar’s decline following news of a US-Iran peace agreement.
The USD weakened in early Asian trading hours after reports emerged of a peace agreement between the US and Iran. Trading volumes remained low, with only New Zealand markets active and Australia set to open soon.
Market activity was subdued due to the early hour, with Tokyo at 5:30 AM and Singapore and Hong Kong at 4:30 AM. Oil and equity futures reactions are expected when Globex opens at 2200 GMT (1800 US Eastern).
The dollar’s move reflects initial market sentiment toward geopolitical developments, though broader participation awaits later sessions.