Broader Asian currencies were flat as markets sought more cues on U.S.-Iran peace talks, especially before the expiry of a tenuous ceasefire on Wednesday

Most Asian currencies moved in a tight range on Tuesday as uncertainty over more U.S.-Iran peace talks, before the expiration of a ceasefire this week, kept traders to the sidelines.

The yen weakened slightly amid growing conviction that the Bank of Japan will not hike interest rates next week, while the Australian dollar was flat as al risk appetite remained subdued.

The yen’s USD/JPY pair gained 0.1% on reports that the BOJ is likely to hold off on raising interest rates next week, as expectations of a prolonged war in the Middle East pointed to more inflationary pressures.

While Japanese inflation has steadily trended lower in recent months, the BOJ has warned that increased fuel and import costs are likely to spur a reversal to the upside– a scenario that warrants more rate hikes.

Broader Asian currencies were flat as markets sought more cues on U.S.-Iran peace talks, especially before the expiry of a tenuous ceasefire on Wednesday.

Oil prices had rebounded on Monday, spooking markets. But they cooled on Tuesday, as markets still held out some hope for a de-escalation in Iran.

The yuan’s USD/CNY pair was flat, as was the Singapore dollar’s USD/SGD.

The Australian dollar’s AUD/USD pair dropped slightly, as did the Indian rupee’s USDINR.

The New Zealand dollar was an exception, with the NZD/USD pair adding 0.3% after first-quarter consumer inflation data read stronger than expected and also crossed the Reserve Bank’s target range.

The dollar index and dollar index futures advanced slightly in Asian trade, remaining close to their lowest levels since early-March.