Dollar edges up

The US dollar firmed on Thursday but stayed below a six-week peak as hopes that Washington was nearing a deal with Tehran to end the war in the Middle East capped further rises.

US President Donald Trump on ​Wednesday said negotiations with Tehran were in the final stages, while also warning of further attacks if Iran does ‌not agree to a deal.

The dollar, often a safe haven for investors, firmed 0.1 percent against the yen to 159.060 yen after falling for the first time in eight sessions against the yen on Wednesday.

Bank of Japan policy board member Junko Koeda added a measure of support for the yen with hawkish comments on Thursday, saying in ​a speech that the central bank needs to continue to raise rates with underlying inflation already around a 2 percent target.

​The euro was 0.2 percent down at $1.160050, after dipping on Wednesday to its weakest level since April 7 at $1.1583 before bouncing back.

The euro dipped after French PMIs for May showed the economy contracting at its sharpest pace in five and a half years.

“Terrible French ​PMI ... but ECB seems determined to raise rates,” said Kenneth Broux, head of corporate research FX and rates at Societe Generale, to explain ​the negative euro.

Traders meanwhile are awaiting euro area composite PMIs for May which will hit screens this morning.

Sterling was down 0.1 percent at $1.3421.

The dollar index , which measures the currency against the euro, yen and four other rivals, rose 0.2 percent to 99.295, down from a peak of 99.472 on Wednesday, the strongest level since April 7.r