Asian currencies steadied against the dollar in early trading on Tuesday, with investors reacting to reports of a potential Iran conflict resolution. The dollar index showed mixed moves across regional currencies, rising slightly against the won while easing versus the baht and ringgit, according to LSEG data. Trading volumes remained light as markets awaited confirmation.

President Trump's announcement of an agreement with Iran to end hostilities provided temporary relief to risk assets. StoneX senior market analyst Matt Simpson noted that Middle East peace hopes sparked a broad risk-on rally across financial markets. However, he cautioned that sentiment could reverse quickly if the deal fails to materialize as promised.

The dollar edged up 0.3% to 1,520.50 won but held steady at 32.77 baht. Meanwhile, it slipped 0.3% to 4.0500 ringgit, reflecting uneven regional currency dynamics. Market participants remain cautious about the geopolitical developments, weighing optimism against historical precedent of fragile Middle East agreements.

Investors face a delicate balance as they parse diplomatic headlines against actual policy implementation. The currency movements suggest measured optimism rather than exuberance, with traders likely to maintain defensive positions until concrete details emerge from the reported Iran agreement.