Precise Investors Editorial Team
Brent crude futures traded at $92.46 a barrel, down from highs near $120 on Monday
The dollar lost some of its safe-haven appeal on speculation that the war in the Middle East could prove limited on Tuesday, pulling down skyrocketing oil prices and boosting risk assets.
At 157.73 yen and $1.1632 per euro, the dollar was firm in early Asia trade, but it has pulled back from day-earlier highs after U.S. President Donald Trump said war against Iran was “very complete.” Washington was “very far ahead” of his initial four- to five-week time estimate, he told CBS News.
The comments were quickly rejected as “nonsense” by Iran, but they seemed to hold traders back from deepening worries about an oil shock and put them in a wait-and-watch stance.
Brent crude futures traded at $92.46 a barrel in the Asia morning, down from highs near $120 on Monday.
The risk-sensitive Australian dollar, which has wobbled around 70 cents since war broke out, steadied at nearly $0.7068.
The market is just taking a breather, said Rodrigo Catril, senior currency strategist at National Australia Bank in Sydney.
We’re cautious in the sense that it may not be as simple as just declaring the end of the war. Our sense is that we haven’t seen the end of the volatility, he said.
The dollar has been traders’ shelter-of-choice as Iran and U.S.’ attacks on each other have all but frozen oil and gas exports through the Strait of Hormuz, sending energy prices soaring.
Investors are worried that could curtail global growth by acting as a tax on business and consumption, while at the same time pushing central banks away from easing rates.
U.K.’s sterling recovered from a Monday dip to hold at $1.3412 and the New Zealand dollar steadied at $0.5932.
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