The yen’s USD/JPY pair gained 0.2%, Australian dollar’s AUD/USD pair dropped 0.2%, USD/KRW pair added 0.6%, while the Singapore dollar’s USD/SGD pair advanced 0.2%

Most Asian currencies weakened on Monday after tensions between Iran and the U.S. spiked over the weekend, with a tenuous ceasefire set to expire this week.

Anticipation of a host of key economic readings in Asia also kept investors to the sidelines, as markets waited to see the full impact of the Iran war through March.

Meanwhile, there were mixed signals on talks between Iran and the U.S. just before the ceasefire expires on Tuesday, leaving markets uncertain over the future of the war.

Beyond the Iran war, U.S. retail sales data due on Tuesday is also expected to provide some cues on the country’s markets.

The yuan’s USD/CNY pair moved little on Monday after the People’s Bank left its benchmark loan prime rate unchanged at record lows.

But the pair remained close to its lowest levels in three years, after a series of strong midpoint fixes from the PBOC boosted the yuan.

Other Asian currencies broadly weakened. The yen’s USD/JPY pair gained 0.2% with Japanese trade and consumer price index inflation data due later this week.

The Australian dollar’s AUD/USD pair dropped 0.2%, declining from a near two-year high. Bets on more interest rate hikes by the Reserve Bank were a major boost to the Aussie in recent weeks.

The won lagged, with the USD/KRW pair adding 0.6%, while the Singapore dollar’s USD/SGD pair advanced 0.2%.

The Indian rupee’s USD/INR pair gained 0.1%, but remained well below record highs hit earlier in the month.

The dollar index and dollar index futures both advanced nearly 0.2% in Asian trade, recovering from two weeks of deep losses.