The dollar gained modestly against most major currencies at the open of Asian markets on Monday, as escalating Middle East tensions, rising oil prices, and fragile investor confidence following last week’s market turbulence combined to lift demand for safe-haven assets.
The dollar rose 0.1 percent against the Japanese yen to 162.48, its strongest level since July 9. The euro slipped 0.1 percent to $1.1426, while sterling held steady at $1.3445. The Australian dollar fell 0.1 percent to $0.6975 and the New Zealand dollar dropped 0.2 percent to $0.5833. The dollar index, which tracks the greenback against a basket of six major currencies, rose 0.1 percent to 100.84.
Analysts at Westpac noted that foreign exchange markets had been “relatively quiet,” with the US dollar broadly stable while the Australian dollar weakened against the greenback and most other major currencies. They added that market sentiment continued to deteriorate as concerns over semiconductor company valuations weighed on risk appetite, compounded by rising Middle East tensions after Iran suspended its commitments under a temporary peace agreement.
Markets are not pricing in any change to interest rates at the Federal Reserve’s next meeting on July 29.
In crypto markets, bitcoin added 0.2 percent to $64,637.89, while ether gained 0.2 percent to $1,869.72.
