Regional currencies also came under pressure due to a slight strengthening of the dollar the day before, after US President Donald Trump's candidate for the post of head of the Federal Reserve, Kevin Warsh, said that he had not made any commitments to lower interest rates.

Market attention remains focused on the evolving conflict with Iran, with the status of the peace talks remaining uncertain after Trump extended the ceasefire but maintained the naval blockade of Iran.

The dollar stabilized after Warsh's comments

The dollar index and dollar index futures were virtually unchanged in Asian trading, having stabilized after some gains on Tuesday.

The dollar received support after Worsch's statement that he had not made any promises to Trump to lower interest rates, and he also emphasized the central bank's independence from politics.

Speaking before the Senate Banking Committee, Worsch said that he would implement extensive reforms to the Fed's policies if he were confirmed as its chairman.

While Warsh's confirmation is likely, the timing of the Senate's approval remains uncertain, especially after leading Republican lawmakers made it clear they would delay his confirmation until the Trump administration ends its ongoing criminal investigation into current Fed Chair Jerome Powell.

Trump has repeatedly demanded that the Fed lower interest rates, even telling CNBC on Tuesday, ahead of Warsh's hearing, that he would be disappointed if it didn't.

The criminal investigation into Powell has been seen by many as an attempt to exert pressure on the central bank.

Asian currencies remain cautious amid ongoing uncertainty over Iran

Asian currencies traded in a narrow range as uncertainty over further peace talks between the US and Iran kept traders on the sidelines.

While the extension of the ceasefire creates some potential for de-escalation, the status of further peace talks remains unclear, especially after the US and Iranian delegations canceled a planned meeting in Pakistan on Tuesday.

Trump has stated that the US naval blockade against Iran remains in place, and that the Strait of Hormuz will remain closed. This poses risks to energy markets and inflation.

The USD/JPY pair remained unchanged after data showed that the country's exports increased for the seventh consecutive month, with the war in the Middle East having limited impact so far.

The South Korean won was an exception, with the USD/KRW pair declining by 0.4% after the producer price index data showed a sharp increase in March, a trend that could prompt the Bank of Korea to take more stringent measures.

The AUD/USD pair with the Australian dollar declined by 0.1%, while the USD/SGD pair with the Singapore dollar remained unchanged. The USD/CNY pair with the Chinese yuan also showed little change.

The USD/INR pair with the Indian rupee rose by 0.4%, while the currency continued to weaken after the Reserve Bank of India lifted some restrictions on derivatives trading, which were aimed at supporting the rupee.