Business Recorder
SINGAPORE: The dollar slipped at the start of Asian trading on Monday as hopes of a deal to reopen the Strait of Hormuz pushed oil prices below $100 per barrel, even as the Trump administration played down the chances of reaching an agreement with Iran soon. Against the yen , the US dollar was down 0.2% at 158.87 yen, while the euro rose 0.3% to $1.1642 and the British pound gained 0.4% to $1.3485. Many global markets are closed for holidays on Monday, thinning liquidity across the region. The Australian dollar advanced 0.4% to $0.7160, while its kiwi counterpart tacked on 0.5% to $0.5877. “There are early signs that risk sentiment remains supported, early Sydney trade revealing a broad-based selloff in the USD, with ‘riskier’ currencies like the AUD benefitting as a result,” analysts from Westpac wrote in a research note. Over the weekend, hopes for a lasting peace deal appeared fragile. US President Donald Trump wrote on Saturday that a memorandum of understanding on a peace deal with Iran had been “largely negotiated,” with both countries and mediators in Pakistan reporting progress. However, the US blockade on Iranian ships in the Strait of Hormuz would “remain in full force and effect until an agreement is reached, certified, and signed,” Trump wrote on Truth Social on Sunday. There was no immediate response from Iran’s government. Oil markets tumbled, as Brent crude prices fell 5.1% to $98.29 a barrel while U.S. West Texas Intermediate was at $91.76 a barrel, off 5%. Traders expressed cautious scepticism over whether a deal would stick. “Markets have become conditioned to be incredibly patient on a tangible breakthrough, but the base case of a deal remains firm, with the weekend news providing further conviction, even if the timing remains unclear.” said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne. Bitcoin was up 0.6% at $77,043.60, while ether was 0.4% higher at $2,099.77.
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