Dollar and Yields Rise, Markets Wary of Iran Deadline
The US dollar strengthened slightly against most major currencies as Treasury yields and oil prices rose, with markets eyeing the two days remaining before the end of the US strike on Iran's energy infrastructure. The Bloomberg Dollar Spot Index rose about 0.1% and moved within a narrow range, reflecting a market that remains headline-driven amid inconsistent diplomatic signals.
The 10-year Treasury yield rose 4 basis points to 4.37%, strengthening the dollar. EUR/USD was relatively flat at 1.1554 after ECB Vice President Luis de Guindos said the ECB was monitoring the economic impact of the Iranian war and remained committed to price stability. EUR/CHF edged up to 0.9164, heading for its fourth straight daily gain.
In Scandinavia, EUR/NOK weakened after the Norwegian central bank kept interest rates unchanged but signaled a hike was “likely appropriate,” reversing its previous projection of three cuts by 2028. Elsewhere in the G-10, the AUD fell for a fifth day—its longest this year—with AUD/USD dropping to 0.6930 after comments by RBA official Chris Kent confirmed the central bank’s strong focus on inflation and fueled rate hike bets.
In Asia, USD/JPY was virtually unchanged at 159.53, with the Bank of Japan’s new core inflation indicator (which excludes fresh food, energy, and special factors) rising 2.7% in February. GBP/USD weakened 0.2% to 1.3337, in line with the dollar’s limited but persistent strength amid geopolitical uncertainty.
Source: Newsmaker.id
