Dollar Strengthens After Largest Oil Reserve Release
The US dollar strengthened after US inflation data (CPI) showed results in line with market expectations. At the same time, Brent oil prices remained above US$92 per barrel, even though the International Energy Agency (IEA) approved the largest oil reserve release in history to curb surging energy prices.
The Bloomberg Dollar Spot Index rose around 0.2% and briefly reached an intraday high in the New York morning session. The latest data showed US core inflation slowed in February compared to the previous month, signaling that price pressures are easing, although inflationary risks from the energy surge remain.
In the currency market, USD/JPY rose around 0.6% to 158.96, extending the dollar's strengthening trend against the yen. Meanwhile, EUR/USD fell 0.4% to 1.157, after previously rising to 1.1645 when ECB Board member Peter Kazimir said the conflict in Iran could increase inflation and force the European Central Bank to raise interest rates sooner than expected.
On the other hand, AUD/USD actually strengthened by around 0.5% to 0.7154, after briefly touching 0.7186, its highest level since June 2022. GBP/USD remained relatively stable around 1.3415, while USD/CAD edged up to 1.3599, and USD/NOK strengthened to 9.6483.
Current market movements indicate that investors are still weighing two main factors: developments in the Middle East conflict, which are affecting energy prices, and the direction of global central bank interest rate policies. The combination of these two factors has continued to trigger volatility in the currency and commodity markets in recent days.
Source: Newsmaker.id
