0029 GMT — Asian currencies consolidate against the U.S. dollar in early trade, but may be weighed by lingering geopolitical risks. “Key issues surrounding control of the Strait of Hormuz and Iran’s nuclear program remain unresolved,” two strategists at OCBC Group Research say in a research report. Also, “inflation risks extend beyond crude oil. Gasoline and diesel prices have increased more rapidly than crude, making energy costs effectively higher than headline oil prices suggest,” the strategists add.

The U.S. dollar rises 0.3% to 1,468.50 won, but is little changed at 1.2911 Singapore dollars and is flat at 163.76 yen, LSEG data show. Market participants remain cautious as energy price pressures and unresolved tensions in the Middle East continue to create uncertainty for regional foreign exchange markets. The consolidation phase reflects a wait-and-see approach ahead of further developments on both geopolitical and inflation fronts.