Safe-haven currencies surged at the start of the trading week after US and Israeli strikes on Iran triggered renewed geopolitical turbulence across the Middle East.
The Japanese yen and the Swiss franc both strengthened as investors sought refuge from escalating regional risks, while the euro retreated and risk-sensitive currencies faced pressure.
The euro fell 0.34% to $1.1776, down from around $1.18 in late New York trading on Friday. It also declined 0.5% against the Swiss franc to 0.9039, its lowest level since 2015.
Meanwhile, the US dollar dropped 0.26% against the yen to 155.65 and 0.3% versus the Swiss franc. However, it gained ground against the British pound and the Australian dollar, reflecting uneven risk positioning across currency markets.
Currency traders were among the first to react after weekend developments intensified instability in the region. Analysts say energy markets will likely set the tone for equities, bonds, and foreign exchange in the coming sessions.
Oil traders reported that Brent crude climbed between 8% and 10% in over-the-counter trading Sunday, reaching around $80 per barrel. On Friday, Brent had already jumped to $73, its highest level since July.
A sharp rise in oil prices would heighten inflation concerns, complicate monetary policy expectations, and potentially weigh on global growth.
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