Asian currencies slipped on Tuesday as traders weighed a fresh Trump tariff threat on goods linked to Iran, escalating Iran unrest that has pushed oil prices higher, and a Fed independence scare after a criminal probe into Chair Jerome Powell. The Japanese yen fell to a one‑year low, trading at 158.76 per dollar, after reports that Prime Minister Sanae Takaichi might call a snap election to secure a mandate for expansionary policy. Meanwhile, the South Korean won and Indian rupee edged up modestly, while the Singapore dollar and Australian dollar stayed flat.

The US Dollar Index nudged 0.1% higher, reflecting a risk‑off mood that has investors wary of U.S. political risk and trade uncertainty. Oil prices climbed after deadly protests in Iran, raising fears of supply disruptions that could further pressure Asian markets. Market watchers now focus on upcoming U.S. economic data and any signals from the Fed, as traders reassess rate expectations amid heightened political pressure.