Dollar Strengthens Again! US-Iran & G-10 Tense Markets
The dollar strengthened and the Australian and New Zealand currencies fell following reports that senior US officials are preparing for a possible attack on Iran.
The Bloomberg Dollar Spot Index headed for a fifth day of gains as Bloomberg quoted people familiar as saying a US attack was possible this weekend, though the situation is still developing
The dollar was also supported by the perceived hawkish tone of comments made by Federal Reserve Chairman Jerome Powell on Wednesday at the central bank's policy meeting. Fed officials lowered their estimates for economic growth this year, while raising their forecasts for unemployment and inflation
"Safe haven assets like gold will rise, and the U.S. dollar will also benefit especially given the extent of the short positioning on the greenback, which could be unwound," said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group
The Bloomberg Dollar Spot Index rose 0.1%
AUD/USD fell 0.5% to 0.6476, while NZD/USD fell 0.8% to 0.5983
USD/JPY was little changed at 145.16
EUR/USD fell 0.2% to 1.1459
Source: Bloomberg
