The dollar index and dollar index futures added 0.1% apiece in Asian trade, recouping a small measure of recent declines

The dollar firmed on Tuesday after renewed U.S. action against Iran raised questions over recent progress towards a peace deal between the two countries.

Strength in the U.S. currency impacted other currency markets, with Asian units weakening after a strong start to the week.

The yen softened slightly, as did the yuan and the Australian dollar.

The dollar index and dollar index futures added 0.1% apiece in Asian trade, recouping a small measure of recent declines.

The dollar was aided chiefly by renewed doubts over an Iran-U.S. peace deal, after reports showed the latter attacked Iran on Monday.

The strikes came even as U.S. officials touted progress in peace negotiations with Iran. Reports over the weekend showed the two nearing a framework deal the reopen the Strait of Hormuz and extend a ceasefire.

Iranian officials warned on Tuesday that any attacks against the country’s military will draw retaliation.

Oil prices surged after Monday’s attacks, recouping some recent losses and keeping markets on edge over the inflationary impact of the war. This notion supported the dollar.

The status of negotiations now appeared uncertain after Monday’s strikes.

The yen’s USD/JPY pair was flat on Tuesday. Bank of Japan Deputy Governor Ryozo Himino said the central bank will consider adjusting policy based on developments in the Middle East, amid growing conviction that the BOJ will raise rates next month.

Other Asian currencies were broadly pressured by a rebound in oil prices. The Australian dollar’s AUD/USD– which is widely viewed as a barometer for risk appetite– dropped 0.1%.

Yuan’s USD/CNY pair gained slightly, as did the Singapore dollar’s USD/SGD. The Indian rupee’s USD/INR advanced 0.3% after dropping sharply from record highs in the past two sessions.

The won’s USD/KRW pair was an exception, boosted by a rally in stock markets.