The Singapore dollar is consolidating against the U.S. dollar as traders evaluate easing U.S. inflation data and escalating Middle East conflict. Soft U.S. producer prices suggest the Federal Reserve may hold off on interest rate hikes, but renewed U.S. strikes on Iran are also a concern.

Technically, the U.S. dollar's recent downward momentum against the Singapore dollar indicates potential further declines, though support is expected around 1.2860. The U.S. dollar is currently trading flat at 1.2887 Singapore dollars.

Meanwhile, the Japanese yen is expected to trade within a band of 161.50-162.50 yen amid conflicting pressures from fading U.S. rate hike speculation and safe-haven demand for the dollar. Japanese officials have indicated readiness for forex market intervention.

Separately, the Thai baht faces headwinds, potentially weakening further against the dollar due to a low carry profile, rising oil prices impacting terms of trade, and increased growth risks from Middle East tensions. The dollar edged higher to 33.58 baht.