Asian Currencies Mixed Amid Mideast Conflict Hopes

Traders price in possibility of shorter-than-feared conflict between U.S. and Iran

Published on Mar. 10, 2026

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Asian currencies were mixed against the dollar, but could be supported by hopes for de-escalation of the conflict between the U.S. and Iran. Traders have begun to price in the possibility that the conflict could be shorter than initially feared, according to market analysts.

Why it matters

The fluctuations in Asian currencies reflect the uncertainty and volatility in global markets due to geopolitical tensions in the Middle East. The potential for de-escalation of the conflict could have significant implications for the value of currencies in the region.

The details

The dollar was flat against the yen at 157.58, but 0.1% higher versus the offshore yuan at 6.8940 and fell 0.5% against the Malaysian ringgit to 3.9390. Analysts noted that the dollar may have formed a near-term top against the yen, based on technical analysis, with a prominent 'shooting star' candlestick pattern forming on the USD/JPY daily chart around a resistance cluster.

  • The market movements were reported as of 0115 GMT on March 10, 2026.
  • The potential for de-escalation of the U.S.-Iran conflict was noted in overnight remarks by President Trump.

The players

Matt Simpson

A senior market analyst at StoneX who provided commentary on the currency market movements and technical analysis.

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What they’re saying

“The markets have swung from 'panic to cautious optimism' over the conflict, citing President Trump's remarks overnight that the conflict could be over 'very soon.'”

— Matt Simpson, Senior Market Analyst

“A prominent shooting star candle has formed on the USD/JPY daily chart around a resistance cluster. Monday's high 'respected' the 2025 high as resistance, and the currency pair closed back below the monthly pivot and last week's high.”

— Matt Simpson, Senior Market Analyst

What’s next

Traders will continue to monitor the situation in the Middle East and how it impacts currency markets in the coming days and weeks.

The takeaway

The mixed performance of Asian currencies reflects the uncertainty surrounding the potential de-escalation of the conflict between the U.S. and Iran, which could have significant implications for the region's economies and financial markets.