Asia FX Slides, Dollar Firms as Markets Weigh Fragile US-Iran Ceasefire

Asian currencies dropped and the U.S. dollar strengthened after a fragile U.S.-Iran ceasefire left markets uncertain about a durable de-escalation. The dollar index rose about 0.3% as investors sought safe havens; the yen, won and offshore yuan weakened and the Indian rupee hit a record low. Elevated Brent crude near $82 and a still-hawkish Fed stance add inflationary pressure for Asian importers, prompting some central bank FX intervention. Safe-haven flows have kept gold elevated near $2,350/oz while U.S. Treasury yields eased as funds rotated into government debt. The net market impact: stronger dollar and safe-haven demand, higher import costs for Asian economies, and continued FX volatility until the ceasefire’s terms are verified.