Oct 1 Reuters Safe haven currencies the Japanese yen and Swiss franc gained on Tuesday after news reports that Iran is preparing to imminently launch a ballistic missile attack against Israel, while U.S. jobs data showed a resilient labor market.

A senior White House official said on Tuesday that the United States is actively supporting preparations to defend Israel.

The market has largely ignored the Middle East conflict in the last month, but a direct IranIsrael confrontation is always at risk of spiraling, said Adam Button, chief currency analyst at ForexLive in Toronto.

The Japanese yen strengthened 0.1 against the U.S. dollar to 143.5. The dollar was roughly flat against the Swiss franc at 0.846, erasing earlier gains.

The dollar index rose 0.4 to 101.15.

U.S. data on Tuesday showed a solid economy, a day after Federal Reserve Chair Jerome Powell pushed back against the likelihood of another 50basis point rate cut when the U.S. central bank meets next month.

U.S. job openings unexpectedly increased in August after two straight monthly decreases, but hiring was soft and consistent with a slowing labor market.

U.S. manufacturing also held steady at weaker levels in September, the Institute for Supply Management ISM said, but new orders improved and prices paid for inputs declined to a ninemonth low, which together with falling interest rates bode well for a rebound in activity in the coming months.

Traders are trying to gauge the likelihood that the Fed will…