While the move modernizes the PBOC's policy toolkit, the yuan continued to face pressure from broad dollar strength.

The dollar remained firm after the Fed reinforced expectations that interest rates could stay higher for longer. Attention now turns to the upcoming PCE inflation report, which could shape the next move in policy expectations.

Brent crude extended its decline as improving US-Iran relations strengthened the global supply outlook. Higher tanker traffic through the Strait of Hormuz and continued Iranian exports kept pressure on oil prices.

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