Global oil prices plunged more than 7% on Monday, marking their sharpest single-day decline in months, amid hopes of a diplomatic breakthrough between the United States and Iran.
Brent crude futures recorded a steep decline after Tehran announced that contacts with the US aimed at ending their eight-month conflict were continuing.
The sharp drop in energy prices helped ease inflation concerns, pushing longer-term US Treasury yields lower.
The benchmark US 10-year Treasury yield stood at 4.9145%, while the 30-year bond yield remained steady at 5.2868%. Both had fallen to their lowest levels in nearly two months during the previous session.
Meanwhile, the US dollar weakened slightly on Tuesday (03), with the dollar index, which measures the currency against a basket of major currencies including the euro and Japanese yen, trading at 101.76 after hitting a one-month low on Monday.
The Australian dollar remained steady ahead of the Reserve Bank of Australia’s interest rate decision. (Newswire/ Reuters)