The yen’s USD/JPY pair traded flat, the won’s USD/KRW gained 0.4%, while the yuan’s onshore pair USD/CNY edged 0.1% higher

Most Asian currencies edged lower on Friday as investors weighed renewed hostilities between Iran and the U.S. amid lingering hopes for a peace agreement in the Middle East.

The yen’s USD/JPY pair traded flat, while the won’s USD/KRW gained 0.4%.

The yuan’s onshore pair USD/CNY edged 0.1% higher.

The Indian rupee’s USD/INR was largely unchanged, while the Singapore dollar’s USDSGD ticked up 0.1%.

The Australian dollar’s AUD/USD pair dropped 0.2%.

MUFG forecast April payroll growth of 45,000 jobs, slightly below the Bloomberg consensus estimate of 65,000 but above what analysts viewed as the “breakeven” level of around 30,000 needed to stabilise labour market conditions.

The Japanese bank also expected the U.S. unemployment rate to edge up to 4.4% from 4.3%, although it noted continuing and initial jobless claims still pointed to a relatively resilient labour market.

In related news, safe-haven demand returned after Iranian and U.S. forces exchanged fire near the Strait of Hormuz on Thursday, raising concerns over a renewed escalation in the region.

Iran accused the U.S. of targeting vessels entering the Strait of Hormuz and striking coastal areas near Qeshm Island, while Washington said it acted in self-defence after Iran targeted three U.S. ships transiting the strategic waterway.

Markets interpreted the comments as a sign that both sides were still seeking to avoid a broader regional war.

With markets awaiting signs of progress on a potential US–Iran deal and the US nonfarm payrolls (NFP) release due later today, some consolidation in Asian FX is possible, MUFG analysts said in a note.