Khaberni - The dollar has lost some of its appeal as a safe haven due to speculation that the war in the Middle East might be limited, leading to a drop in very high oil prices and a rise in risk-laden assets.
The dollar reached 157.73 yen and 1.1632 against the euro at the start of Asian trading, but it retreated from its highest levels in the previous day after U.S. President Donald Trump told CBS News that Washington is "very advanced" in the war on Iran compared to his initial estimate of four to five weeks.
The Iranian Revolutionary Guard quickly dismissed these statements as "nonsense," but it apparently prevented the stoking of traders' fears of an oil shock and put them in a waiting and watching position.
The price of Brent crude futures reached $92.46 a barrel in the morning in Asia, down from a high of $120 on Monday.
The risk-sensitive Australian dollar settled at around $0.7068 after hovering in the 70-cent range since the onset of the war.
The dollar was a preferred haven for traders, as American and Israeli attacks on Iran led to a freeze in oil and gas exports through the Strait of Hormuz, raising energy prices.
Investors fear that this could restrain global growth by imposing burdens on businesses and consumption, while at the same time prompting central banks to move away from easing interest rates.
The pound sterling recovered from its decline on Monday to settle at $1.3412, and the New Zealand dollar stabilized at $0.5932.
