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Asian currency moves remained relatively muted as investors continued to weigh higher-for-longer U.S. rate expectations and the still-uncertain outlook for the Iran war. Reuters reported the U.S. Dollar Index edged down 0.1% to 99.576 on Thursday, but the broader tone still favored the dollar as markets dialed back expectations for any near-term easing in U.S. policy.

In the latest pricing, USD/JPY was around 159.48, USD/KRW traded near 1,506.42, USD/INR around 94.114, USD/CNY near 6.9045, and USD/SGD around 1.2818, while AUD/USD was near 0.6949. That keeps the broader picture intact: the yen was broadly flat, the won, rupee, yuan, and Singapore dollar stayed under pressure versus the dollar, while the Australian dollar managed only a slight uptick.

Source: Reuters; Investing.com live FX pages.

The U.S. Dollar Index traded largely flat around 99.66 in Asian hours after two straight sessions of gains, while Dollar Index futures were also little changed. The tone suggested the dollar was holding onto its recent safe-haven support rather than extending the rally further.

The market stayed cautious as Iran said it was reviewing a U.S. proposal aimed at ending the war, while still denying that formal talks were underway. Reuters said the dollar held on to recent gains as investors waited for clearer signs on whether de-escalation in the conflict was actually imminent.

Source: Reuters; Investing.com.

Lower energy costs can reduce inflation pressure, which in turn may pull bond yields lower and weaken the U.S. dollar. That mix usually supports gold, because bullion does not pay interest and tends to perform better when yields and the dollar ease. In early Wednesday trading, the U.S. Dollar Index fell 0.2%, while spot gold rose 2.2% to $4,570.74 per ounce and U.S. gold futures gained 3.8% to $4,569.10.

Source: Reuters; Investing.com.

Asian currencies broadly weakened as investors moved back toward the U.S. dollar after Iran denied that talks with Washington had taken place, undermining hopes for quick de-escalation in the Middle East. Reuters reported the Dollar Index rose 0.2% to 99.387, reflecting a renewed safe-haven bid as markets turned cautious again.

Among regional currencies, the South Korean won came under the heaviest pressure, with USD/KRW jumping 1%. The Indian rupee also weakened, as USD/INR rose 0.4% to 93.54, staying close to the previous session’s record high area. The Chinese yuan and Singapore dollar also softened, with USD/CNY up 0.2% and USD/SGD up 0.3%.

Elsewhere, the Australian dollar fell 0.6% to $0.6968, while the Japanese yen was little changed overall, with Reuters showing the dollar at 158.73 yen in Asian trading even as other market snapshots indicated a marginal 0.1% move in USD/JPY. The broader picture remained the same: higher oil prices, geopolitical uncertainty, and a firmer dollar continued to pressure risk-sensitive Asian currencies.

Source: Reuters; Investing.com market update.

The U.S. dollar firmed after Monday’s slide, with the Dollar Index rising about 0.2% on Tuesday, as Iran denied that any talks with Washington had taken place since the war began. That contradiction undercut hopes for quick de-escalation and pushed investors back toward the dollar as a relative safe haven. Reuters said the dollar’s rebound came as broader market caution returned alongside renewed pressure from higher oil prices and geopolitical uncertainty.

The greenback had weakened in the previous session after President Donald Trump said the U.S. had held “very good and productive” talks with Iran and would pause strikes on Iranian energy infrastructure. But Iran rejected those claims, clouding the diplomatic outlook and helping the dollar regain some ground.

Source: Reuters.

The Indian rupee came under renewed pressure as rising oil prices and a firmer U.S. dollar weighed on one of Asia’s most energy-dependent economies. Reuters reported the rupee hit a fresh record low in trading, while the latest available market quote showed USD/INR around 93.36, still near its weakest level on record.

The pressure is fundamentally tied to energy. With India importing most of its oil, higher crude prices raise refiners’ demand for dollars and worsen the country’s current account outlook. At the same time, the broader dollar backdrop remained firm, with Brent crude around $112.83 and the Dollar Index near 99.94, reinforcing the external shock hitting the rupee.

Source: Reuters; Investing.com.

The U.S. dollar edged lower against the offshore Chinese yuan, with USD/CNH trading around 6.8770 on the latest available market pricing.

Source: Investing.com; Reuters. 

The New Zealand dollar rose to around $0.5821, gaining about 0.4%, even after official data showed Q4 2025 GDP grew just 0.2% quarter-on-quarter, below both analyst expectations and the RBNZ’s 0.5% forecast. The move suggests the market focused less on the GDP miss itself and more on the view that the economy had started to regain some momentum before the latest oil shock hit.

At the same time, the Reserve Bank of New Zealand said it will change its Open Market Operations framework and begin offering weekly full-allotment liquidity operations, with the new design expected to take effect from April 2, 2026. That signals a modest operational shift aimed at giving market participants more certainty over liquidity access.

Source: Reuters; Stats NZ; Reserve Bank of New Zealand.

The Australian dollar stayed supported, with AUD/USD trading around 0.7051–0.7054, after Australia’s February labor-market report showed a much stronger-than-expected 48,900 increase in employment. Even so, the unemployment rate still rose to 4.3%, slightly above expectations, highlighting a mixed underlying picture.

The Reserve Bank of Australia has also warned that the Middle East conflict is a material inflation risk, saying there is a “material risk” that inflation stays above target for longer than previously expected. That combination of solid hiring, a softer labor-market detail, and renewed geopolitical inflation risk is helping keep the Aussie relatively firm for now.

Source: Reuters; Reserve Bank of Australia; Yahoo Finance; Investing.com.

Asian currencies moved in different directions on Thursday. The Chinese yuan weakened modestly, with USD/CNY around 6.8999, while the Singapore dollar was firmer, leaving USD/SGD near 1.2828. The standout was the Australian dollar, with AUD/USD around 0.7036 after Australia’s February employment report showed a much stronger-than-expected 48,900 job gain, even as the unemployment rate unexpectedly rose to 4.3%. Meanwhile, the South Korean won strengthened, pushing USD/KRW down to about 1,499.35, while the Indian rupee remained fragile, with USD/INR around 93.259, still close to record-weak levels after trading above 93 overnight.

The overall market message is that the Aussie is getting support from stronger labor data, while the broader Asian FX complex is still being shaped by dollar firmness, geopolitical risk, and sensitivity to energy prices.

Source: Reuters; Investing.com.

The U.S. dollar stayed supported after February producer inflation came in hotter than expected, and the Federal Reserve kept rates unchanged while warning that higher energy prices could lift inflation again. The latest market pricing showed the Dollar Index (DXY) near 100.07, with EUR/USD around 1.1482, GBP/USD near 1.3287, and USD/JPY around 159.66.

The underlying driver is a more cautious Fed outlook. Reuters reported that U.S. PPI rose 0.7% month-on-month in February and 3.4% year-on-year, both above expectations. The Fed then held its policy rate in the 3.50%–3.75% range and signaled that inflation risks remain elevated, prompting markets to further scale back expectations for near-term rate cuts.

Source: Reuters; Federal Reserve.

The Japanese yen remained under pressure after the Bank of Japan left its policy rate unchanged at 0.75%, with the decision passing 8–1 and board member Hajime Takata dissenting in favor of a hike to 1.0%. Despite some brief stabilization after the decision, USD/JPY was still trading around 159.6–159.7, keeping the pair close to the key 160 level and near its weakest yen levels since mid-2024.

The market message is that holding rates steady did little to reverse yen weakness. With oil prices still elevated and the Middle East conflict adding to inflation and trade-risk concerns for Japan, traders continue to see limited support for the currency unless the BOJ turns more clearly hawkish or authorities step up intervention threats.

Source: Bank of Japan; Reuters; Investing.com.