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Most Asian currencies were little changed on Thursday after the prior session’s strong relief rally, as investors turned more cautious about whether the temporary U.S.-Iran ceasefire will hold. In the latest available rates, the U.S. Dollar Index was around 99.10, while USD/JPY traded near 158.81, USD/CNY around 6.8359, USD/KRW near 1,481.11, AUD/USD around 0.7034, USD/SGD near 1.2735, and USD/INR around 92.65–92.73. The price action suggests the dollar remains soft versus Wednesday’s highs, but the pace of Asian FX gains has clearly slowed.

The broader signal is that markets are no longer trading a clean ceasefire-relief narrative. Reuters reported that doubts over the truce, continued shipping restrictions in the Strait of Hormuz, and renewed oil strength have brought back a more defensive tone. For India, that matters especially because the rupee remains sensitive to oil prices and to the RBI’s recent efforts to smooth volatility. Reuters also reported that RBI Governor Sanjay Malhotra said the recent curbs on banks’ FX positions and non-deliverable forwards are temporary measures aimed at containing short-term instability rather than a structural policy shift.

Possible Market Effect: If ceasefire doubts deepen and oil continues to rebound, Asian currencies may struggle to extend Wednesday’s gains, especially in energy-importing economies. If tensions ease again and Hormuz flows normalize, the softer-dollar trend could resume more clearly across the region.

Source: Reuters, Investing.com, Reserve Bank of India

Most Asian currencies moved higher on Wednesday as the U.S. dollar weakened and risk sentiment improved after President Donald Trump agreed to a temporary ceasefire with Iran. At the same time, the Reserve Bank of New Zealand kept its Official Cash Rate unchanged at 2.25%, in line with expectations.

In the latest rates, the U.S. Dollar Index was around 98.84, while Dollar Index futures were down about 0.9%. The USD/CNY pair was around 6.83, the USD/JPY pair around 158.36, the USD/KRW pair around 1,473.8, AUD/USD around 0.7073, and USD/SGD around 1.2739.

The broader signal is that easing geopolitical stress and lower oil prices have temporarily shifted markets back toward a risk-on tone, which has pressured the dollar and supported regional currencies. Reuters also reported that the yen, euro, sterling, the Australian dollar, and the New Zealand dollar all rallied after the ceasefire announcement.

Possible Market Effect: If the ceasefire holds and oil stays lower, Asian currencies could remain supported against the dollar in the near term. But if the truce breaks down, the dollar may quickly regain safe-haven demand and reverse part of this move.

Source: Reuters, Investing.com, Reserve Bank of New Zealand

The U.S. dollar remained broadly supported in the latest FX snapshot, as ongoing Middle East tensions continued to favor the greenback as a relative safe haven. In the market screen, EUR/USD traded at 1.1530/1.1533, down 0.10%, while GBP/USD stood at 1.3222/1.3224, down 0.17%. Risk-sensitive currencies also softened, with AUD/USD at 0.6909/0.6911, down 0.09%, and NZD/USD at 0.5696/0.5698, down 0.21%.

At the same time, the dollar strengthened against several major and regional currencies. USD/JPY rose to 159.79/159.81, up 0.06%, USD/TRY reached 44.6056/44.6153, up 0.09%, USD/CHF climbed to 0.7990/0.7991, up 0.14%, and USD/CAD advanced to 1.3922/1.3924, up 0.06%. Crosses were more mixed, with EUR/JPY at 184.26/184.28, down 0.04%, while EUR/GBP edged up to 0.8721/0.8723, up 0.03%. Overall, the price action shows that the dollar is still attracting defensive demand, while most major counterparts remain under pressure against it.

Possible Market Effect: If geopolitical tensions remain elevated, the dollar may continue to find support against cyclical and risk-sensitive currencies, while broader FX markets remain driven more by safe-haven positioning than by domestic macro fundamentals.

Source: FX market price snapshot

The U.S. dollar stayed slightly stronger in the latest Asia trading update as Iran rejected a ceasefire proposal and President Donald Trump intensified threats ahead of his deadline over the Strait of Hormuz. The dollar index was at 100.06, the yen traded at 159.91 per dollar, the euro stood at $1.1538, and sterling was at $1.3227. The Australian dollar traded at $0.6917, while the New Zealand dollar was at $0.57. Reuters said the dollar remained supported by safe-haven demand as investors stayed cautious over the risk of further escalation in the Middle East.

The broader macro message is that FX markets are still treating the Middle East conflict and the closure risk around the Strait of Hormuz in the Persian Gulf as supportive for the dollar, especially against more risk-sensitive and Asia-linked currencies. Reuters also reported that markets were counting down to Trump’s deadline while Iran pushed for a permanent end to the war rather than a temporary truce.

Possible Market Effect: If tensions escalate further and Hormuz remains disrupted, the dollar could stay supported as a safe-haven asset, while pressure may persist on the yen, Asian currencies, and broader risk sentiment.

Source: Reuters

The Indian rupee continued to recover from its recent record low, with USD/INR at 92.71 on Friday, after touching 95.22 earlier in the week. That leaves the rupee on track for a weekly gain of more than 2% against the U.S. dollar, as the Reserve Bank of India’s latest steps helped stabilize the currency and forced a broader unwinding of speculative positions.

The RBI capped banks’ net open foreign exchange positions and barred them from offering rupee non-deliverable forwards (NDFs) to clients, moves that triggered onshore dollar selling and reduced pressure from offshore-style speculation. The central bank’s crackdown has helped push the rupee well away from this week’s extreme lows, even though bankers and analysts still see underlying vulnerability if oil prices stay high and external flows remain weak.

Possible Market Effect: The RBI’s measures can keep supporting the rupee in the short term by suppressing speculative pressure and improving onshore FX dynamics. But if crude prices remain elevated or capital outflow pressure returns, the currency may still struggle to hold all of its rebound.

Source: Reuters.

The Australian dollar weakened even after stronger-than-expected trade data, with AUD/USD trading at $0.6878, down roughly 0.7% and hovering near the two-month lows seen earlier in the week. Reuters reported that the move reflected a broader shift back into the U.S. dollar after President Donald Trump signaled more aggressive strikes on Iran, which pushed investors out of risk-sensitive currencies despite Australia’s February trade surplus widening sharply to A$5.686 billion.

Possible Market Effect: The price action suggests geopolitical risk and dollar strength are currently outweighing supportive domestic data for the Aussie. If Middle East tensions stay elevated, AUD/USD may remain under pressure even with solid Australian macro releases.

Source: Reuters.

The South Korean won weakened further, with USD/KRW around 1,519.71 in delayed trading. The Japanese yen also softened, with USD/JPY at 159.375 in Reuters reporting during Asian hours. The move shows the dollar staying firm against key Asian currencies after President Donald Trump signaled a further escalation in military operations against Iran, reviving safe-haven demand for the greenback.

The Chinese yuan also came under pressure in the regional move, although delayed quotes showed USD/CNY near 6.8715. The Singapore dollar was softer as well, with USD/SGD around 1.2873 in delayed pricing. Together, the updated levels suggest Asia FX remained under pressure from geopolitical risk and a firmer dollar backdrop, even if the size of the move differed across currencies.

Possible Market Effect: A stronger dollar usually tightens financial conditions across Asia and can keep pressure on import-sensitive economies if oil stays elevated. If the Iran conflict continues to intensify, regional currencies may remain vulnerable to further weakness against the dollar.

Source: Reuters; Yahoo Finance delayed FX quotes.

The Indian rupee strengthened sharply after the Reserve Bank of India intensified its crackdown on currency speculation. In early trading, USD/INR moved to 93.53, well below this week’s record low near 95.23, as markets responded to tighter restrictions on offshore-style rupee trading and the forced unwinding of speculative positions.

The RBI barred banks from offering rupee non-deliverable forward (NDF) contracts to both resident and non-resident clients and also stopped companies from rebooking cancelled forward contracts. The move is aimed at curbing arbitrage and speculative pressure that had added to rupee weakness as oil prices rose and Iran-war risks weighed on India’s external balance.

Possible Market Effect: The RBI’s tougher stance can support the rupee in the near term by triggering onshore dollar sales and reducing speculative pressure. But if oil stays elevated and external-flow concerns persist, the currency may remain vulnerable to renewed weakness.

Source: Reuters.

The U.S. Dollar Index rose back above the 100 mark and was recently around 100.05, after President Donald Trump said the United States would intensify military operations against Iran over the next two to three weeks, undermining earlier hopes for a near-term de-escalation. The shift in tone revived safe-haven demand for the dollar after two sessions of losses.

U.S. Dollar Index futures were also firmer. The front-month ICE U.S. Dollar Index futures were recently around 99.41, while Reuters reported the spot dollar index was up about 0.5% on the renewed geopolitical bid.

Possible Market Effect: A firmer dollar can pressure Asian and emerging-market currencies, tighten financial conditions at the margin, and add another headwind for dollar-priced assets if the conflict premium stays elevated.

Source: Reuters; MarketWatch.

The U.S. Dollar Index was trading around 99.79 in Asian hours on Wednesday, after falling 0.59% on Tuesday, when it had still been near its highest level since May 2025. The USD/JPY pair was broadly steady around 158.73 after slipping 0.6% in the previous session. The USD/KRW pair was around 1,506.82, up slightly on the day after the won had gained overnight, while USD/INR traded near 93.75–93.80, up about 0.2% intraday after Tuesday’s decline. The rupee had earlier hit a record low near 95.22 per dollar, before rebounding.

The U.S. dollar index stayed firm as Middle East tensions continued to support safe-haven demand. The index was last at 100.47 after touching 100.61, its highest level since May 2025, as investors kept favoring the dollar amid escalating conflict and rising oil-driven inflation risks.

Possible market effect: A firmer dollar can keep pressure on emerging-market currencies, commodities priced in dollars, and broader global risk sentiment. If geopolitical tensions remain elevated, the greenback may stay supported while markets further trim rate-cut expectations.

Source: Reuters; ICE U.S. Dollar Index.

The latest prices show a still-defensive tone across Asian currencies. USD/JPY was around 159.63, down 0.04%, while USD/KRW was near 1,507.05, almost unchanged at -0.01%. USD/CNY traded around 6.9117, up 0.01%, and USD/SGD was near 1.2856, up 0.05%. The Indian rupee remained the weakest point, with USD/INR at about 94.398, up 0.14%, after touching a fresh intraday record high of 94.405. Meanwhile, AUD/USD rose 0.20% to around 0.6905.

The broader backdrop remains the same: safe-haven demand has kept the dollar supported as markets weigh Iran diplomacy, while Reuters reported the rupee hit a fresh record low during Friday trading as war-related energy risks continued to pressure India’s external outlook.

Source: Reuters; Investing.com live FX market pages.