Asian currencies were steady early, but analysts warned escalating U.S.-Iran attacks could pressure risk-sensitive assets and support the dollar.
The U.S. dollar remained firm in early Asian trading as escalating conflict in the Middle East kept risk appetite under pressure and supported demand for safer assets. Asian currencies consolidated against the greenback, though analysts said they could weaken if the conflict intensifies after U.S. Central Command said American military forces had begun a new wave of strikes against Iran for a ninth straight night. The dollar rose 0.2% to 1,490.20 won, while the Australian dollar was little changed at $0.6979. Analysts at InTouch Capital Markets said Iran-U.S. headlines were continuing to dominate markets, with ongoing attacks pushing up oil prices and unsettling stocks. Earlier in the session, broader currency moves also showed the dollar gaining 0.1% to 162.48 yen, the euro slipping 0.1% to $1.1426, sterling holding at $1.3445 and the New Zealand dollar falling 0.2% to $0.5833. Brent crude had risen 3.3% to $90.97 a barrel, while traders increased bets that the Federal Reserve will leave rates unchanged on July 29.