Investors also monitored lingering geopolitical risks after Iran said there had been no progress in efforts to revive an interim peace deal with Washington

Most Asian currencies held steady on Thursday after a volatile session, while the dollar remained firm as investors weighed the U.S. central bank’s rate outlook following an in-line inflation report.

The yen was under pressure, with the USD/JPY pair near a two-week high at 159.43.

Markets are closely watching the yen after Tokyo confirmed yen-buying intervention earlier this month to halt the currency’s slide to 40-year lows.

Investors also monitored lingering geopolitical risks after Iran said there had been no progress in efforts to revive an interim peace deal with Washington.

The U.S. has accused Tehran of failing to honour commitments to reopen the vital shipping route, while Iran says Washington has not fulfilled its own obligations.

The renewed tensions kept oil prices higher, with Brent at around $89 a barrel, raising concerns over imported inflation across Asia.

The won’s USD/KRW edged 0.1% higher, while the Singapore dollar’s USD/SGD traded flat.

The yuan’s onshore pair USD/CNY was also muted, while the Indian rupee’s USD/INR inched up 0.1%.

The Australian dollar’s AUD/USD pair dropped 0.2%.

Elsewhere, data on Wednesday showed that U.S. consumer prices rose 0.1% in July, matching economists’ expectations. Annual inflation declined to 3.4% from 3.5% in June, while core CPI rose 0.2% month-on-month and 2.5% from a year earlier.

The data reduced expectations of a U.S. central bank rate hike at its September meeting, with market-implied odds dropping to nearly 40% from 54% before the report.

Looking ahead to the September FOMC meeting, this inflation print should allow the FOMC to remain on hold for now but is probably not enough to shift positions at this time, MUFG analysts said in a note.