Allegations of an Israeli attack on Iran sparked a rally in safe-haven currencies like the Swiss franc and Japanese yen amid heightened tensions between the two nations. The news caused a ripple effect across global markets, influencing oil prices and instilling caution among investors.
Undisclosed sources claim Israel launched strikes against Iran, ostensibly in retaliation for Iran’s recent assault on Israel following a suspected Israeli hit on its consulate in Syria. Though Iran tried to downplay the incident, stating no immediate retaliation plans, markets reacted violently. The fallout triggered a risk asset sell-off and significant oil and gold price hikes, driving a surge in US Treasuries and refuge currencies.
The famously stable Swiss franc initially jumped over 1%, peaking at 0.9011 per dollar – a two-week high. However, it later pared gains to around 0.5% at 0.9079 to the dollar after Iran’s relatively measured response.
Meanwhile, Iranian state media reported downing three drones over Isfahan sans any instant retaliation plans. Israel’s leadership have yet to comment.
The Japanese yen likewise climbed around 0.2% to 154.39 per dollar at first, before rallying over 0.6% amid alleged attack reports.
European morning trade saw currencies rally, with the euro initially dipping but later rebounding 0.1% to $1.06505. The British pound held steady at $1.2441.
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