Asian currencies found some support from softer crude prices and improved risk sentiment following the Iran-US accord

Most Asian currencies edged higher on Thursday after sharp losses in the previous session.

The yen’s USD/JPY pair edged down 0.1% but remained near its strongest level since 2024.

The pair jumped to as high as 160.80 yen on Wednesday, surpassing levels hit in late April that triggered official intervention.

Japanese authorities must now be bracing for higher levels in USD/JPY – perhaps into the 162/163 area – before another round of intervention is due, ING analysts said in a note.

The won’s USD/KRW pair dropped 0.4% after surging 1.2% in the previous session.

The Australian dollar’s AUD/USD pair added 0.3% after slipping 0.7% on Wednesday.

The yuan’s onshore USD/CNY pair was largely muted.

The Singapore dollar’s USD/SGD pair and the Indian rupee’s USD/INR were also little changed.

Asian currencies found some support from softer crude prices and improved risk sentiment following the Iran-US accord.

The two countries signed an interim peace deal extending a ceasefire and creating a framework for negotiations toward a broader settlement, easing fears of prolonged disruptions to Middle East energy supplies.

The agreement helped push oil prices lower, alleviating inflation concerns for major energy-importing Asian countries.

In related news, the US Dollar Index edged 0.2% higher in Asian trading, after climbing 0.6% to its highest since late March in the previous session.

The US central bank on Wednesday left interest rates unchanged as widely expected, but signalled that policymakers still see scope for tighter monetary policy later this year.

Futures markets subsequently priced in an 83% probability of a hike by December, according to the CME FedWatch tool, boosting Treasury yields and underpinning the dollar.