Dollar Holds Near 18-Month High as Geopolitical Risks Rise
- On Tuesday, the USD held its ground in Asian trading as geopolitical risks rose following renewed attacks on energy infrastructure in the Middle East and Ukraine.
- Brent crude futures slid 0.9% to $105.74, partially retracing Monday's 1.8% gain driven by attacks in Saudi Arabia and Ukraine, while rising Treasury bond yields supported the USD.
- Chris Weston, head of research at Pepperstone Group Ltd in Melbourne, said "higher relative interest rates" and "stronger US growth" provide tailwinds for the USD; the British pound remained steady at $1.3209.
- Bank of Japan data showed wholesale prices rose 6.8% in the year to September, falling short of the 7.6% forecast, as the USD weakened 0.1% against the yen.
- The Australian dollar was 0.1% weaker at $0.6956 after the Reserve Bank voted unanimously to raise rates for the fourth time this year, while The New Zealand dollar fell 0.1% to $0.5582, trading near an 18-month low.
27 Articles
27 Articles
The dollar index continues its strong performance driven by geopolitical tensions, high energy prices, and expectations that the Fed may tighten monetary policy again. The weakening euro and high US bond yields are also supporting demand for the dollar, bringing the search for safe havens back to the forefront in global markets.
The dollar settled at the beginning of the Asian trades today after a holiday in some American markets, while geopolitical risks escalated following renewed attacks on energy installations in the Middle East and Ukraine.
The dollar is still near its 1.5-year high at the beginning of the week, with investors focused on Middle East tensions and Wednesday's US inflation data. Yemen's Houthis have stepped up their attacks on Saudi energy facilities, but the price of Brent crude fell to $103.3 after US President Donald Trump announced a ceasefire in the Ukraine-Russia energy dispute. The forint started the week above 365 against the euro and around 326 against the do…
The escalation of the situation in the Middle East significantly influenced the situation.
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