Currencies traded in tight ranges, with investors reluctant to take large positions

Most Asian currencies were largely muted on Thursday as investors weighed mixed signals over efforts to end the Middle East war.

Iran said it was reviewing a U.S. proposal aimed at ending hostilities, with mixed signals on whether efforts will progress, keeping investors cautious.

While Iran has not formally accepted the plan, it has stopped short of rejection, raising hopes of a potential path toward de-escalation.

Iran has denied direct negotiations with the U.S. and indicated that key differences persist. The lack of clarity has kept traders on edge, with oil markets subdued on Thursday.

In the absence of credible de‑escalation and normalization of energy flows through the Straits of Hormuz, elevated oil prices and higher US yields are likely to keep the USD supported, while oil‑importing Asian currencies remain vulnerable, MUFG analysts said in a note.

Indeed, Brent prices remain above USD100/bbl, albeit easing from recent highs, keeping global inflation risks skewed to the upside, they added.

Currencies traded in tight ranges, with investors reluctant to take large positions amid uncertainty over Iran’s review of a U.S. proposal.

The yen’s USD/JPY pair traded flat, while the won’s USD/KRW ticked up 0.1%.

The Indian rupee’s USD/INR pair added 0.3% to 94.15 rupees, just below record highs of 94.20 rupees hit in the previous session.

The yuan’s onshore pair USD/CNY was largely muted, while the Singapore dollar’s USD/SGD advanced 0.1%.

The Australian dollar’s AUD/USD pair rose 0.1%.

The US Dollar Index traded flat during Asian hours after two sessions of gains, supported by safe-haven demand.