US stocks extended declines: S&P 500 fell 0.7%, Nasdaq down 1.1%, Dow Jones down 0.9%.

Trump said in a podcast interview he is working on a deal with Iran and that Iran has agreed not to possess nuclear weapons. He said Iran’s supreme leader is negotiating with the U.S. and has authorized talks. Trump said he never intended to meet Iranian leaders but may do so depending on negotiation outcomes. He said the U.S. could lift its blockade on Iran before Labor Day (Monday, Sept. 7).

Options dealers are increasing hedges for large JPY moves over the next two weeks ahead of the Bank of Japan meeting and potential FX intervention. Two-week USD/JPY butterfly spreads have risen to their highest since October 2022, signaling elevated market concern about volatility. Despite record-scale FX support spending from April 28 to May 27, the yen remains under pressure, fuelling speculation of further intervention. Investors will watch the BOJ's June 15-16 meeting for policy direction as the wide US-Japan interest-rate gap continues to weigh on the yen; Moh Siong Sim, FX strategist at OCBC, says intervention risk is the primary market focus as USD/JPY tests the 160 level.