US-Iran Deal Concerns Weigh on Currency Markets Amid Payroll Jitters

Currency markets remained cautious on Thursday as concerns over a proposed US-Iran deal and jitters about upcoming US payroll data left traders uncertain. The dollar index, which tracks the US currency against six major peers, was little changed at 99.65, hovering near a six-week low.

The yen, which had weakened for two straight sessions, was steady at 157.71 per dollar in early trade after Tokyo and Washington's coordinated intervention efforts failed to sustain its recent gains. The currency has now given back some of the intervention gains, retreating from its Monday high of 155.20 per dollar but remaining well off last month's multi-decade low of about 164.

Brent crude futures fell 0.5% to US$79.08 a barrel on Thursday, near the levels last seen when the US and Iran signed an interim peace agreement in June. Central banks are also in focus as the Bank of Japan policymakers debated mounting price risks that likely required more rate hikes even as they raised borrowing costs to a 31-year high in June.