Asian FX weakens on geopolitical fears; USD/JPY tests 155.50

Asian currency markets experienced broad weakness during mid-session trading as renewed Middle East tensions sparked risk-off sentiment. USD/JPY climbed 0.25% to test 155.50 resistance despite potential intervention risks from Japanese authorities. Regional currencies underperformed, with USD/SGD rising 0.3% and USD/THB gaining 0.4%. WTI crude oil rebounded 1.8% to $78.50, adding inflationary pressure concerns for Asian importers. The Nikkei 225 fell 1.2% while gold held steady near $2,340, reflecting mixed safe-haven flows. S&P 500 futures pointed 0.5% lower, suggesting continued risk aversion. Currency traders are increasingly defensive ahead of the Fed decision, with Asian central banks likely monitoring their currencies for excessive volatility. The combination of geopolitical uncertainty and pending Fed guidance creates a challenging environment for emerging market currencies.