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Asian Currencies Pause as Middle East Tensions Mount

Wall Street Journal Markets •
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Asian currencies remained steady against the U.S. dollar on Friday as traders monitored escalating tensions in the Middle East. The U.S. military conducted bombing runs targeting the B1 Bridge connecting Tehran to Karaj, according to The Wall Street Journal. With markets operating on holiday-thinned volume, investors are closely watching for developments ahead of President Trump's April 6 deadline for Iran.

Late last month, Trump delayed by 10 days his ultimatum for Iran to open the Strait of Hormuz or face attacks on its energy sites. InTouch Capital Markets analysts noted that "markets will sit and wonder if any good comes by April 6, which looks more unlikely with each passing minute." The dollar traded little changed at 6.8869 against the offshore Chinese yuan while weakening 0.3% to 1,505.60 won, LSEG data showed.

The currency market's cautious stance reflects growing uncertainty about the region's stability. Traders are weighing the potential economic impact of further military action against Iran's energy infrastructure, which could disrupt global oil supplies. The consolidation in Asian currencies suggests investors are adopting a wait-and-see approach as geopolitical risks intensify.