The major moves were in the oil market, with crude prices hitting a five-month high, while global stocks slipped after the US attacked Iran's nuclear sites and President Donald Trump raised the idea of regime change in the Islamic republic. 

In currency markets, the euro was 0.33% lower at $1.1484, while the Australian Dollar, often seen as risk proxy, hit a one-month low and was last 0.67% weaker at $0.6408. 

That left the Dollar index, which measures the US currency against six other units, 0.12% higher at 99.037.

Sterling was 0.26% lower at $1.3416, while the New Zealand Dollar sank 0.68% to $0.5926. 

Carol Kong, currency strategist at Commonwealth Bank of Australia, said the markets are in wait and see mode on how Iran responds, with more worries about the positive inflationary impact of the conflict than the negative economic impact. 

"The currency markets will be at the mercy of comments and actions from the Iranian, Israeli and US governments," Kong said. "The risks are clearly skewed to further upside in the safe haven currencies if the parties escalate the conflict." 

The Dollar was up 0.52% against the yen at 146.81 after touching a one month high earlier in the session.

The US currency cast a shadow on other Asian currencies, including the Rupiah, Ringgit and the Philippine Peso.

Bank of America strategists said the Dollar-Yen can reprice higher if oil prices remain elevated, noting Japan imports almost all of its petroleum, more than 90% of which comes from the Middle East, while the US is largely energy-independent. 

--Reuters--