The dollar index ticked up to 99.19, the euro edged up to $1.1633

The U.S. dollar steadied on Tuesday in a wait-and-see approach to Middle ​East peace talks, although broader geopolitical uncertainties kept traders on edge.

Investors have treated news of any progress toward ending the Iran war with caution, given the fragility of an Iran- U.S. ceasefire struck in early April.

The situation is likely ​to remain unstable for the time being, at least until Iran and the U.S. actually strike a deal ⁠in their talks, said Kumiko Ishikawa, senior analyst at Sony Financial Group.

That means markets may stay headline-driven and jittery, but reports of incremental progress ​alone are unlikely to spread a sense of relief, Ishikawa said.

The dollar index ticked up to 99.19, the euro edged up to $1.1633.

The dollar had rallied at the onset of the war, which began on February 28, buoyed by safe-haven demand and the U.S. economy’s relatively limited exposure to energy-driven inflation. However, it has given back some of those gains due to the uncertainty of the war’s trajectory.

In Japan, Finance Minister Satsuki Katayama said on Tuesday the authorities ​stood ready to respond in the currency market as needed and refrained from commenting on recent exchange-rate moves.

The yen was a bit lower ​against the dollar at 159.71 per dollar, close to the 160 level widely seen by markets as a trigger for intervention.

If dollar/yen breaks above 160, the risk ‌of surpassing ⁠the April 30 high would increase markedly, raising the likelihood of stronger verbal warnings and a renewed round of rate checks or actual intervention, said Mizuho Securities chief currency strategist Masafumi Yamamoto.

Markets are also waiting for a speech by Bank of Japan Governor Kazuo Ueda on Wednesday for possible signals as to whether the central bank will proceed with a rate hike next week.