SYDNEY- The dollar held onto its sharpest gains in a week on Wednesday after an Iranian missile attack on Israel drove buying of safe assets as investors fretted about the widening of conflict in the Middle East.

Moves in Asia were slight, though most currencies were attempting to regain some ground after sharp falls in the previous session.

The euro eased 0.06 percent to $1.1060, following its largest drop in nearly four months on Tuesday.

The Australian and New Zealand dollars erased early gains to last trade 0.06 percent and 0.25 percent higher, respectively, at $0.6887 and $0.6296.

The kiwi was further pressured by bets of more aggressive easing from the Reserve Bank of New Zealand (RBNZ) when it meets next week, with markets pricing in an 87 percent chance of a 50-basis-point cut.

Iran said on Wednesday its missile attack on Israel, its biggest military assault on the Jewish state, was over, barring further provocation, while Israel and the United States promised to retaliate against Tehran as fears of a wider war intensified.

Israel said Iran fired more than 180 ballistic missiles and Iran’s Revolutionary Guard Corps said the attack was retaliation for Israeli killings of militant leaders and aggression in Lebanon against the Iran-backed armed movement Hezbollah.

Markets’ response to the Middle East tensions thus far has largely centered on oil prices and ANZ analysts noted further moves will likely be determined by Israel’s response and whether it attacks Iran’s military or oil industry.

Elsewhere, the bid for safety kept the Swiss franc steady at 0.8460 per dollar.