Peace Signals Lift Sentiment, Dollar Loses Steam
The US dollar weakened on Tuesday (March 10th) after the safe-haven rally of the past few days lost steam, as oil prices fell sharply and markets assessed the likelihood of a US-Israel war with Iran abating "more quickly." The dollar index fell to around 98.74.
The dollar's weakening coincided with a correction in oil prices after the previous day's extreme surge. Reuters noted that Brent fell to US$91.81/barrel and WTI to US$88.51/barrel, as Trump's statement about a potential end to the conflict eased concerns about prolonged supply disruptions, although the risk of Hormuz remained intact.
In the G10, the euro held steady to slightly higher, while sterling rose slightly as falling oil prices helped ease concerns about UK imported inflation. Reuters noted that GBP/USD rose 0.1% to US$1.3454 and EUR/USD around US$1.1639.
In Asia, the yen remained relatively flat as Japan remains vulnerable to energy shocks, although revised data showed stronger economic growth in Q4 2025 than initially estimated. Japan's GDP was revised to 1.3% annualized (from 0.2% in the initial estimate), with capital spending and consumption improving, signaling domestic resilience but still overshadowed by energy risks.
Source: Newsmaker.id
