0032 GMT — Asian currencies are mixed against the dollar in early trade, but may strengthen amid signs of a pause in the U.S.-Iran conflict that could underpin appetite for risky assets. The “key development over the weekend was a pause in [U.S.] strikes against Iran since late Friday,” MUFG Bank’s Michael Wan says in a research report. “While it is difficult to know for sure how things will pan out, our base case remains for de-escalation over time,” the senior currency analyst says. The U.S. dollar declines 0.2% to 163.53 yen, but is 0.1% higher at 1,460.30 won, LSEG data show. ([email protected])

Analysts note that a de‑escalation could boost risk‑on sentiment, lifting emerging‑market currencies. Market participants are watching for further diplomatic cues that might sustain the pause. If the truce holds, investors may shift capital toward higher‑yielding Asian assets, supporting currencies such as the won and the yen.

The mixed performance reflects divergent reactions: yen weakness versus dollar strength in the won pair. Traders remain cautious, balancing geopolitical optimism with broader macroeconomic data. Overall, the outlook hinges on whether the pause in hostilities translates into a sustained de‑escalation.