Forex - U.S. Dollar Recovers from Safe-Haven Flight After Saudi Attacks

16 September 2019, 16: 58
© Reuters.

The U.S. dollar recovered from an earlier low caused by an attack on oil fields in Saudi Arabia.


Oil prices surged after the attack crippled nearly 5% of global oil production, rising fears of a global economic slowdown and increasing tensions between the U.S. and Iran. The U.S. government blamed Iran for the attacks, which the Islamic state denies.


Currencies linked to the price of oil rose after the news, with USD/CAD falling 0.2% to 1.3254 as of 10:37 AM ET (14:37 GMT), and the Norwegian crown surged to 8.9633 against the dollar.


The Japanese yen, which is seen as a safe haven in times of market turmoil, rose with USD/JPY falling 0.2% 107.89. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, gained 0.3% to 98.140, after reaching an overnight low of 97.655.



Elsewhere, sterling tumbled after Luxembourg Prime Minister Xavier Bettel said he would only delay the Brexit deadline if it serves a purpose. U.K. Prime Minister Boris Johnson is expected to ask the EU for an extension, but the bloc requires unanimity for the deadline to be extended.


GBP/USD slumped 0.6% to 1.2420, while the euro decline, with EUR/USD falling 0.5% to 1.1012.