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The U.S. stock market edged lower on receding hopes for a peace agreement with Iran (August 20).
The U.S. stock market edged lower, with the Dow Jones Industrial Average finishing down 4.87 points at 49,442.56 and the Nasdaq Composite closing 64.09 points lower at 24,404.39. Rising tensions following Iran's renewed blockade of the Strait of Hormuz diminished hopes for a peace agreement, leading to higher crude oil prices that weighed on sentiment after the opening bell. However, selling pressure eased mid-session amid expectations for renewed negotiations, as President Trump confirmed plans for the Vice President and special envoy to visit Pakistan. Additionally, declining long-term interest rates provided support to the market.
The dollar remained soft at 158.55 yen/1.1790 dollars amid attention on the U.S.-Iran renegotiations and the upcoming confirmation hearing for Warsh as the next FRB chairman.
[London Market Overview] In the London foreign exchange market on the 20th, the US dollar to Japanese yen pair showed limited declines. NY crude oil futures (WTI) softened to around $88 per barrel, contributing to a bearish sentiment for the US dollar. The currency pair fell from 159.07 yen to 158.86 yen but rebounded slightly as demand for the yen weakened. The euro to US dollar pair fluctuated on the back of declining crude oil prices, with the dollar selling off and the euro rising from 1.1756 dollars to 1.1769 dollars. Meanwhile, the euro to yen cross declined from 187.07 yen to 186.91 yen amid sluggish European and American stock indices, though it stabilized somewhat due to movements in the euro.
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