As conflict quiets in Ukraine and the U.S. shows signs of pushing back militants in Iraq, Japan's yen dropped from its three-week high on Monday. Against its counterparts, the currency was down 0.1 percent to 102.10 per dollar after climbing to its strongest since July 24 at 101.51 last week. It also rose 0.1 percent to 136.65 against the euro, reports Bloomberg.
The Bloomberg Dollar Spot Index, which tracks the dollar against 10 developed-market peers, remained the same at 1,021.67, following four straight weeks of gains.
Asian shares .MIAPJ0000PUS last increased by 0.9 percent, recovering after their biggest weekly fall in nearly five months last week, reports Reuters.
Israel and the Palestinians agreed on an Egyptian proposal on Sunday for a new 72-hour cease fire in Gaza, boosting risk sentiment even further.
Evan Lucas, strategist at IG in Melbourne said, "The conclusions from the weekend are that conflicts are cooling, and the risk-off events of the past two weeks may see upside risk as de-escalation spreads across the conflicts," according to Reuters.
However, many traders have warned that there is a possibility investors could quickly turn risk-averse again, as the overseas conflicts remain unpredictable.
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