Currencies traded in tight ranges on Friday as investors remained on edge amid talks of escalation in the Middle East conflict, while thin liquidity due to the Good Friday holiday kept moves subdued.
The dollar held steady after rising 0.4% in the previous session, benefiting from heightened risk aversion following comments from U.S. President Donald Trump on Iran.
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Iran conflict remains heightened; Trump vows further strikes
Trump said Washington could intensify military action in the coming weeks and, in a separate post late Thursday, warned that U.S. forces could target critical infrastructure such as bridges and power plants.
Investor sentiment had shown some signs of stabilising on Thursday after Iran said it was working with Oman on a framework to manage shipping traffic through the Strait of Hormuz, easing some concerns over supply disruptions in a key oil route.
The Japanese yen’s USD/JPY pair traded flat at 159.61 yen on Friday by 07:44GMT, near the closely watched 160-per-dollar mark, trading around 159.6.
Japan’s finance minister also warned that authorities were ready to act against speculative moves in the foreign exchange market as volatility increased.
The South Korean won’s USD/KRW pair, and the Singapore dollar’s USD/SGD were largely muted.
Indian rupee drifts further from recent record low
The Indian rupee’s USD/INR pair edged 0.3% lower on Friday to 92.71 rupees, after hitting a record high of 95.22 rupees at the start of the week.
