Dollar Slides Against All G-10 Peers
The U.S. dollar weakened against all Group-of-10 (G-10) currencies on Wednesday as global equities rebounded and oil prices fell after a multi-day rally. Markets were briefly buoyed by a report claiming Iranian operatives offered to discuss terms to end the war—an account that was later denied by Tehran.
The Bloomberg Dollar Spot Index erased earlier gains from Asia and the European morning, falling about 0.25% in New York afternoon trading. Meanwhile, 2-year and 10-year Treasury yields edged higher. The New York Times report cited officials who were briefed on Iranian outreach, reportedly involving contact with the CIA.
In energy markets, both Brent and WTI traded lower after several days of advances, easing some inflation fears tied to surging crude. The White House said the Iranian regime has been “absolutely crushed,” though the timeline for military operations remains unclear—keeping geopolitical uncertainty elevated.
In FX, the Swedish krona jumped more than 1%, leading gains across the G-10. The Australian and New Zealand dollars also outperformed, rebounding after Tuesday’s selloff.
The USD/JPY pair fell 0.4% to 157.04. Japan’s Finance Minister Satsuki Katayama reiterated that the government could act to curb excessive currency moves, including through market intervention. One-week risk reversals widened to 202 bps in favor of the yen—its highest level in three weeks—highlighting a sharp rise in demand for near-term hedges. The repricing was abrupt: the gauge stood near 87 bps on Monday, pointing to a sudden rush for protection rather than a gradual shift in sentiment.
In Europe, EUR/USD rose 0.2% to 1.1632, its first gain this week, though it remained below the 200-day moving average near 1.1671. EUR/GBP edged up 0.1% to 0.87038. EUR/CHF slipped 0.17% to 0.90658, falling for a second day after Swiss National Bank policymaker Antoine Martin said the central bank’s willingness to intervene in FX markets has increased given the current geopolitical backdrop.
Source : Newsmaker.id
