The dollar traded mixed against Asian currencies early Friday, edging higher against some and flat to lower against others, as markets absorbed the latest developments in the long-running U.S.-Iran standoff.
President Trump said late Thursday that he has an agreement with Iran to end the conflict but that final details still need to be completed in coming days. Trump also canceled further strikes against Iran, signaling a deal is close. The developments mark the latest swing in a volatile pattern that has dominated global markets for weeks. MSI previously covered the immediate risk-off reaction to renewed U.S.-Iran strikes — a stark reversal from the mood now taking hold in trading rooms. Asian currencies had consolidated on risk-off sentiment as recently as Thursday, before Trump’s latest announcement upended the outlook.
The Singapore dollar edged 0.1% lower against the greenback to 1.2848 Singapore dollars, according to LSEG data. OCBC Group Research strategist Sim Moh Siong said in a research report that the slight weakness was likely due to position adjustments, but that the currency may be buoyed by risk-on sentiment.
“Hopes of reopening the Strait of Hormuz pushed oil lower, easing inflation concerns and driving cross-asset moves,” Siong said, adding that lower crude prices are risk-positive.
The U.S. dollar rose 0.3% to 1,520.50 South Korean won, held flat at 32.77 Thai baht, and fell 0.3% to 4.0500 Malaysian ringgit.
Middle East peace hopes have sparked a broad risk-on rally across financial markets, StoneX senior market analyst Matt Simpson said in commentary. But the analyst cautioned that the market mood remains fragile.
“Risk sentiment could quickly reverse if this proves to be another deal that disappears as quickly as it supposedly arrived,” Simpson said.