Dollar subdued as markets eye ceasefire talks; yen pressured by BOJ delay

The dollar and yen were under pressure on Tuesday, with ​investors poised to buy riskier currencies and hoping for a U.S.-Iran deal to reopen ‌Gulf shipping, while a sticky inflation reading lifted the New Zealand dollar. With the ceasefire set to expire this week, the fate of Iran peace talks remained uncertain as Tehran has yet to decide how to proceed with the diplomatic ​process following a recent escalation in tensions. However, investors think both sides are motivated to ​reach a deal. President Donald Trump said negotiations are happening “relatively quickly” and will ⁠yield better terms than previous agreements. The euro stood at $1.1782 and sterling traded at $1.35225 , both down roughly ​0.1% so far on the day. The risk-sensitive Australian dollar weakened 0.1% to $0.7171 in early trading.