Asian currencies consolidated early in the session, holding steady against the U.S. dollar, with the greenback unchanged at 159.49 yen and 33.03 baht per the LSEG data. The market opened after a risk‑off mood, as Wall Street sold off on Monday amid renewed Middle East tensions, a pattern noted by UOB’s Global Economics & Markets Research team.

Brent crude oil rose to near $91 a barrel overnight, reigniting inflation concerns that could dampen growth and pressure Asian currencies. The rise in oil prices typically signals higher inflation, which may hurt economic expansion and pressure Asian currencies. The rise in oil prices typically signals higher inflation, which may hurt economic expansion and support a stronger dollar.

Analysts expect the dollar‑yen and dollar‑baht pairs to remain near current levels unless fresh geopolitical shocks or policy moves emerge. Traders will watch upcoming data and any signals from central banks for direction amid the backdrop of rising energy costs.

The U.S. dollar’s modest strength, combined with the oil‑driven inflation risk, may keep Asian markets on the defensive in the near term, prompting cautious positioning by investors as they await further cues from monetary policy and geopolitical developments.