Most Asian currencies slipped marginally against the dollar on Monday as geopolitical concerns resurfaced following renewed hostilities between Iran and the United States. The weekend exchange of strikes has investors seeking safer assets, putting pressure on regional foreign exchange markets and creating a challenging environment for currency traders across the continent.

Iran's Foreign Minister Abbas Araghchi sparked fresh controversy by claiming Tehran holds exclusive rights to manage shipping traffic in the Strait of Hormuz under a preliminary agreement with Washington. These remarks emerged after several days of tit-for-tat military actions between the two nations, raising questions about the stability of any potential diplomatic resolution and its impact on global energy supplies.

Strategists at OCBC Group Research noted the re-escalation has intensified risk-off sentiment in markets, making it particularly difficult for Asian currencies to gain traction. The dollar strengthened 0.2% against the won to 1,538.20 and gained 0.1% versus the Singapore dollar, reaching 1.2942. This movement reflects broader investor caution amid ongoing geopolitical uncertainty.

The currency weakness underscores how Middle East tensions continue to influence Asian financial markets, even as regional economies grapple with their own growth challenges. Energy-importing nations face particular pressure as crude prices react to supply disruption fears, compounding the FX headwinds for central banks managing monetary policy during volatile periods.