Dollar and Oil Rise Together, Markets Wary of Iran Escalation
The US dollar reversed early losses and held firm heading into the weekend, while oil climbed back to a new cycle high as the Iran war entered an escalation phase and markets added hedges. The dollar index (DXY) stood at 99.14, with a weekly gain of about 1.5%—its largest since November 2024.
On the energy front, Brent rose to around US$87.66/barrel after remarks from Qatari energy officials raised concerns that supply would not be restored quickly without a cessation of hostilities. In the bond market, the 10-year Treasury yield hovered around 4.17%, maintaining pressure on riskier assets and strengthening the dollar's appeal.
EUR/USD reversed lower to 1.1572 (around -0.3%) after a slight gain, as markets assessed that the energy surge was increasing the risk of European inflation and reinforcing the repricing of the region's interest rate path.
GBP/USD hovered around 1.3347, with sterling remaining under weekly pressure as markets factored energy inflation risks into the interest rate outlook, while the dollar absorbed global safe-haven demand.
AUD/USD hovered around 0.7008, down -0.56% on the day, underscoring the pressure on riskier currencies amid a stronger dollar and geopolitical uncertainty.
USD/JPY strengthened to 157.90 (around +0.2%) and posted a weekly gain of around +1.2%, as the yen was held back by a combination of global risk-off and Japan's sensitivity to energy surges.
USD/CHF hovered around 0.7816 (around +0.09%), suggesting the franc does not always outperform the dollar during risk-off periods, as the dollar remains the primary destination for global liquidity.
Source: Newsmaker.id
