Investor sentiment improved after reports later Thursday said Iran and the U.S. have reached a draft framework to extend their ceasefire for another 60 days while negotiations continue over other issues

Asian currencies were little changed on Friday as investors weighed prospects of an Iran-U.S. peace deal after reports said Tehran and Washington were close to extending their ceasefire agreement.

The yuan’s onshore pair USD/CNY edged down 0.1%.

The won’s USD/KRW pair gained 0.5%, bucking the trend.

The Indian rupee’s USD/INR ticked down 0.2%, while the Singapore dollar’s USD/SGD edged 0.1% higher.

The Australian dollar’s AUD/USD pair traded largely flat.

The yen’s USD/JPY pair tarded largely flat on Friday.

Data released on Friday showed Tokyo core consumer inflation slowed to 1.3% in May from a year earlier, remaining below the Bank of Japan’s 2% target for a fourth straight month.

Headline Tokyo inflation eased to 0.7%, while an index excluding both fresh food and energy was flat on the month.

The softer inflation figures reinforced expectations that the BOJ will proceed cautiously with further monetary policy normalization, limiting support for the yen despite stronger Japanese factory output data released earlier in the session.

In related news, the US Dollar Index was little changed at 99 in Asian trade after sliding 0.2% overnight, and was headed for a weekly loss.

US Dollar Index Futures also traded largely unchanged.

Investor sentiment improved after reports later Thursday said Iran and the U.S. have reached a draft framework to extend their ceasefire for another 60 days while negotiations continue over other issues.

The proposal still awaits approval from Iran and U.S.

The tentative agreement raised hopes for easing restrictions around the Strait of Hormuz, helping calm energy markets and boosting broader risk appetite.

Still, currencies moved in narrow ranges due to uncertainty about a long-lasting deal.