Middle East situation remains uncertain, Asian currencies consolidate against the US dollar

According to Golden Ten Data on May 26, Asian currencies remained range-bound against the US dollar during early trading as traders assessed developments in the Middle East. The Wall Street Journal, quoting a senior US official, reported that the United States launched strikes on targets in southern Iran on Monday, which US military officials described as a "defensive strike." The attack occurred amid ongoing negotiations between the US and Iran to end the conflict. In a report, two foreign exchange strategists from OCBC Bank’s research team noted that risks to a potential US-Iran agreement remain high: "We believe the downside for the US dollar will be limited. Supported by the artificial intelligence investment cycle, the US still holds a relative advantage in economic growth." LSEG data showed that the US dollar fell 0.2% against the South Korean won to 1509.70 (UTC+8), was little changed at 1.2767 (UTC+8) against the Singapore dollar, and the Australian dollar fell 0.1% against the US dollar to 0.7166 (UTC+8).