Markets Cautious on US-Iran Talks Advance

Financial markets showed cautious optimism on Friday as US-Iran peace negotiations advanced toward a potential second round of talks this weekend, amid ongoing tensions over Iran's nuclear program and the Strait of Hormuz. President Donald Trump expressed confidence in a breakthrough, stating during a Thursday press briefing that the two sides were "very close to a deal" and that Iran appeared willing to abandon its uranium enrichment ambitions. The developments followed a 10-day ceasefire between Israel and Lebanon that took effect earlier this week, though the broader Middle East conflict, sparked at the end of February, continues to disrupt global energy supplies.

In currency markets, the US dollar held steady against major rivals, reflecting traders' balanced outlook on the diplomatic progress. The euro traded sideways near 1.1777 in Asian sessions before dipping below the key 1.1800 support level in early European trading, marking its lowest point in three weeks. This decline, which triggered increased selling volume, aligned with a modest strengthening of the dollar index to around 98.25, though it remained on track for a weekly loss. Analysts attributed the dollar's...