Investors bet on safe haven assets after Iran’s attacks on Israel.
He global dollar maintained its biggest gains in a week in the early hours of Wednesday after the massive missile attack from Iran to Israel will encourage the purchase of safe haven assets due to investor concerns about an escalation of the conflict in Middle East. In Uruguay, The currency recovered the positive path in line with the international scenario, and once again approached 42 pesos.
He dollar index, which measures the performance of the greenback in relation to a basket of six other currencies of international relevance, remained stable at 101.32 units, after rising 0.5% in the previous day, following the news that the “imminent attack” by Iran on Israel—in retaliation for the ground offensive that the Israeli army carried out in the Lebanon, territory of Hezbollah— was carried out on Jerusalem and Tel Aviv; and that since Tehran assured that there would be no more attacks if there was no further provocation – despite the fact that since USA and the government of Benjamin Netanyahu They said they would retaliate.
So far, the markets’ response to tensions in the Middle East has focused on oil prices. “The oil price seems to be the starting point for the market (but) even now Brent (crude oil) is still at $75 a barrel, and that’s much lower than before the summer,” Jane Foley, a senior oil analyst, told Reuters. director of foreign exchange strategy at Rabobank.
“It’s obviously still a major source of concern. And the market will certainly be watching that and also the Federal Reserve and the U.S. economy,” he added.
In Japan, the dollar was last up 0.77% against the yen, at 144.71 yen per dollar. Bank of Japan (BoJ) Governor Kazuo Ueda avoided repeating the central bank’s promise to continue raising rates in a speech and focused on the risks facing the economy.
For his part, and after a meeting with Ueda, the new Prime Minister Shigeru Ishiba said that the country is not in a position to carry out an additional increase in interest rates, which would cause a further fall in the yen.
The dollar regains momentum in Uruguay
In Uruguay, meanwhile, the dollar rose 0.59% compared to Monday and closed at 41,884 pesos, according to the price of the Central Bank (BCU), so it added its second positive day in a row and started the month on the rise, after its appreciation in September.
In this way, the local exchange market adapted to what happened globally after the rise in the dollar index after the escalation of tensions in the Middle East, as a result of Iran’s missile attack on Israel.
Source: Ambito
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