Dollar Extends Losses as Brent Crude Slides Toward $100
The U.S. dollar weakened and oil prices fell on Monday morning as investors grew more optimistic that shipping activity through the Strait of Hormuz could pick up, helping risk appetite return to markets and pulling money out of defensive positions.
The Bloomberg Dollar Spot Index dropped about 0.7%, its biggest decline in nearly two months, after hitting a three-month high on Friday. Valentin Marinov, head of G-10 FX research at Credit Agricole, said risk sentiment staged a cautious rebound, partly tied to recent calls from President Donald Trump for NATO to support U.S. efforts to unblock Hormuz. He added that the allies’ response has been lukewarm, potentially signaling Trump is running out of options to contain the oil-price surge that has already weighed on GOP polling ahead of the midterm elections.
Trump said he is “demanding” that other countries contribute to the defense of the Strait of Hormuz. Iran, meanwhile, denied Trump’s assertion that it wants ceasefire talks, launching fresh attacks across the Persian Gulf and forcing a suspension of flights at Dubai’s main airport—reminding markets that geopolitical risk remains elevated even as risk-on flows reemerge.
In rates, the U.S. 10-year Treasury yield fell 6 basis points to around 4.22% after rising 14 bps last week, reinforcing the dollar’s pullback.
In Japan, USD/JPY slipped as much as 0.5% to 158.99 after touching 159.75 on Friday, its highest level since July 2024. Finance Minister Satsuki Katayama said authorities are prepared to respond with bold steps if necessary. ING strategists wrote that with the pair trading near 160, markets are firmly in intervention territory, though they questioned whether Washington would formally join Japan in coordinated action.
Elsewhere, EUR/USD jumped about 0.9% to 1.1518. USD/CAD fell around 0.3% to 1.3675 after Canada’s inflation rate slowed more than expected in February. GBP/USD rose roughly 0.8% to 1.3333.
Source : Newsmaker.id
