The US dollar is experiencing its most significant monthly increase since July, driven by geopolitical tensions in the Mideast, surging oil prices, and concerns about a global recession. The dollar's strength is evident against major currencies like the euro, Australian dollar, and New Zealand dollar. Safe-haven assets like bonds and gold have performed poorly, while the yen is facing pressure despite intervention threats from Tokyo.
US dollar banknotes are seen in this illustration taken on March 24.SINGAPORE — The dollar headed for its biggest monthly gain since July on Tuesday and stands out as the strongest so-called safe asset as war in the Mideast has set oil prices surging and raised the risk of global recession .
Overnight the dollar extended gains widely, save for against the yen where renewed threats of intervention from Tokyo have traders wary of selling the yen too far past 160 per dollar. Having touched its weakest since July 2024 a day earlier, the yen traded at 159.81 in the Asia morning on Tuesday, down about 2.4 per cent on the month owing to Japan's import exposure to skyrocketing energy prices.The euro slipped 0.3 per cent overnight, and is headed for a monthly drop of about three per cent, and the Australian and New Zealand dollars slid to multi-month lows. The Aussie, after holding up for much of the month, has notably started to crack in recent sessions as markets have shifted the focus of worries from inflation to global growth. The currency hit a two-month low of US$0.6834 overnight and traded at US$0.6844 in the Asia morning. The New Zealand dollar has also crumbled and hit a four-month trough of 57 cents on Monday, and last traded nearby at around US$0.5716.The US dollar index touched its highest since last May on Monday at 100.61 and is up 2.9 per cent through March, its sharpest monthly rise since last July. US President Donald Trump warned on Monday the US would obliterate Iran's energy plants and oil wells if Tehran does not open the Strait of Hormuz, after Tehran described US peace proposals as "unrealistic" and fired missiles at Israel. Kuwait said a fully-laden Kuwaiti oil tanker was struck by an Iranian attack while anchored at Dubai, Kuwait's state news agency KUNA reported on Tuesday, pushing up oil prices. "Barring any clear, conciliatory messages from the Iranian side, it is hard to see the dollar handing back this month's gains anytime soon," said Chris Turner, ING's global head of markets. Federal Reserve Chair Jerome Powell talked down the likelihood of imminent rate hikes on Monday, reiterating the US central bank's wait-and-see approach and saying inflation expectations seem anchored, beyond the short term. That pulled short-dated bond yields lower and knocked out expectations for any US hiking this year, but didn't really wobble the dollar because it tends to benefit from a safety bid when the outlook for global growth is negative. Other havens like bonds and gold have both performed poorly since war broke out and with the yen failing to fire, threats from the Swiss National Bank to combat currency strength have turned investors off the Swiss franc as a haven.March inflation data is due later in the session in Europe along with Chinese PMI surveys.
Please follow us on Google to support us US Dollar Currency Markets Global Recession Oil Prices Geopolitics
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Taiwan's opposition leader to visit China next month, ahead of TrumpBEIJING/TAIPEI — The leader of Taiwan's largest opposition party, the Kuomintang (KMT), will visit China in April after being invited by Chinese President Xi Jinping, a trip that will come a month before US President Donald Trump goes to Beijing for his own summit.
Read more »
Pope Leo says God rejects prayers of leaders who wage warsVATICAN CITY — Pope Leo said on Sunday (March 29) that God rejects the prayers of leaders who start wars and have 'hands full of blood', in unusually forceful remarks as the Iran war entered its second month.Addressing tens of thousands in St Peter's Square on Palm Sunday, the celebration that opens the holy week leading up to Easter for...
Read more »
Regional Powers Meet in Pakistan to Discuss De-escalation Amidst US-Iran ConflictForeign ministers from Egypt, Saudi Arabia, Pakistan, and Turkey convened in Islamabad to explore de-escalation strategies amidst the ongoing US-Israel conflict with Iran. This meeting occurred as Pakistan expressed its readiness to facilitate direct talks between the US and Iran, aiming for a resolution to the month-long war that has significantly impacted the region and global economy.
Read more »
MOE appoints 4 student care operators to replace Little Professors Learning CentreThe Ministry of Education (MOE) has appointed four student care operators to replace Little Professors Learning Centre whose contract was terminated last month. In the statement on Monday (March 30), the ministry said that the operators are: Learning Studio Educare, Principals Academy Inc, Young Men’s Christian Association of Singapore and Nascans.
Read more »
Singapore Center Defies Odds: Long-Term Transplant Survival SoarsA Singapore-based organ transplant center, NUCOT, has defied global averages, celebrating 35 patients living over 25 years post-transplant. Madam Leong Kwai Sin, a kidney transplant recipient, marks 41 years of survival. Professor Anantharaman Vathsala shares NUCOT's strategies for exceptional long-term success.
Read more »
Brent crude set for record monthly gain; Asia shares falter as Iran war ragesSINGAPORE — Oil prices on Tuesday (March 31) were set for a record monthly rise while Asian shares were headed for their steepest fall since 2022, capping a tumultuous month as the war in the Middle East stoked fears of higher inflation and slower growth.Bonds were headed for their largest decline in months, owing to the hawkish sea change in...
Read more »