Asian currencies mostly strengthened against the dollar in early Monday trade after the U.S. and Iran reached an interim peace deal, boosting risk appetite and pushing oil prices lower.
The U.S. dollar fell 0.2% to 159.93 yen and dropped 0.8% to 1,505.60 won, according to LSEG data. The Australian dollar rose 0.5% to US$0.7079.
“The main theme has been risk-on,” Commerzbank Research analysts said in a research note. Investor sentiment was lifted by optimism over the U.S.-Iran deal and lower oil prices, they added.
The agreement, announced over the weekend, represents the first diplomatic breakthrough between the two nations after months of escalating tensions. The deal is expected to ease supply concerns in global oil markets, which have weighed on crude prices in recent days.