The dollar held onto its biggest gain in a week on Wednesday after an Iranian missile attack on Israel prompted safe-haven buying as investors worried about a widening conflict in the Middle East.
Early moves in Asia were slight, leaving the euro below $1.10 after its biggest drop in nearly four months overnight.
The yen was broadly steady at 143.45 against the dollar and the Swiss franc at 0.8463 against the greenback. The New Zealand dollar fell 1.1 percent overnight to $0.6283 and oil prices jumped 2.5 percent.
The dollar index rose about 0.5 percent overnight to 101.2, its biggest gain since Sept. 25. The dollar also received support from a stronger-than-expected reading on U.S. job openings.
Israel said Iran fired more than 180 ballistic missiles, and Iran's Revolutionary Guard said the attack was in response to recent Israeli killings of militant leaders in the region as well as to attacks on Lebanon and Gaza.
There were no reports of casualties in Israel. Iran struck Israel in April without causing serious damage. However, the start of the Israeli ground offensive against Hezbollah inside Lebanon and Israel’s pledge to respond opens the door to the possibility of escalation.
The Australian dollar fell to $0.6883, although losses there were limited by some upbeat retail sales data released on Tuesday.
The pound fell 0.7 percent overnight and was steady at $1.3278 in early Asian trade, according to Reuters data.
