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EnglishپارسیEnglishپارسیThe U.S. dollar strengthened further as the Middle East conflict and oil surge drove investors toward cash and away from energy-sensitive currencies. The latest Reuters market update showed the dollar rising about 0.55% to 158.70 yen, while the euro traded 0.9% lower at $1.1517, after sliding to a 3.5-month low earlier in the session. The Australian dollar also stayed under pressure, falling about 0.77%, as markets priced in the inflation and growth risks from a prolonged energy shock. The move reinforces a broader pattern: in periods of geopolitical stress and higher oil prices, the dollar tends to benefit from safe-haven demand and the U.S. economy’s relative insulation as a net energy exporter.
Source: Reuters.
China’s yuan inched higher on Friday but stayed on track to snap a record weekly winning streak and post its biggest weekly drop in more than a year, as the dollar stayed broadly firm amid the widening Middle East conflict. China’s central bank also moved to encourage corporate demand for dollars in derivatives markets by removing the FX risk reserve requirement for forward contracts.
Source: Reuters; People’s Bank of China (PBoC)
The dollar eased in early Friday trade, with the DXY index down and high-beta FX slightly firmer. At the time of the snapshot:
Source: FX market pricing (snapshot)
Global bond yields were higher on Friday, with the biggest moves in Europe, signaling renewed pressure on rates as markets continue to price inflation and risk premia.
At the time of the update:
Source: Government bond market pricing
Asian currencies were mixed as volatility in energy and risk sentiment kept the USD supported. The yen was largely flat, while the Singapore dollar softened slightly. The standout move was the Indian rupee, which clawed back some ground after hitting a record low level in the prior session.
Current rates (spot):
Source: Investing.com; Yahoo Finance (spot FX pricing).
The U.S. dollar rose 0.1% versus the offshore yuan, with USD/CNH trading around 6.9287, after February PMI data sent mixed signals—official gauges pointed to weaker activity while a private-sector survey beat expectations.
In the G10 complex, the Australian dollar fell 0.6% to $0.6996 even as Q4 GDP accelerated. Capital Economics argued the headline may overstate weakness in private demand, but said the RBA may still worry growth is running above potential. The New Zealand dollar edged 0.1% higher to $0.5898.
Source: Reuters; Capital Economics
The British pound fell 0.3% to $1.3323, while the U.S. Dollar Index (DXY) edged 0.1% higher to 99.208 after earlier hitting its strongest level since Nov. 28.
Against the yen, the dollar eased 0.2% to ¥157.52, suggesting modest safe-haven support for JPY even as broader USD demand stayed firm.
Source: ICE U.S. Dollar Index (DXY); FX market pricing
The euro slipped 0.2% to $1.1590, extending losses into a third straight session after earlier touching its weakest level since late November. The move followed data showing euro zone inflation was hotter than expected in February, released before the Iran conflict escalation.
Deutsche Bank’s George Saravelos said the EUR/USD impact of the Iran war “boils down” to energy, arguing Europe is facing a negative supply shock that effectively acts like a tax on Europeans, paid to foreign producers in dollars—a dynamic that can keep the euro pressured when energy prices rise.
Source: Eurostat; Deutsche Bank Research; FX market pricing
Risk-sensitive Asian currencies stayed under pressure as the dollar remained bid, while China’s yuan found some support after a stronger official fixing.
Live levels (approx.):
Source: Investing.com; People’s Bank of China
Monday, March 2, 2026 — The Indian rupee and Singapore dollar weakened versus the U.S. dollar, while the yen also slipped, even as some safe-haven demand helped limit the move.
Source: Investing.com; Xe
The U.S. Dollar Index edged 0.5% higher in Asian trading after jumping earlier in the session on safe-haven demand. U.S. Dollar Index futures were also up 0.5%, trading above 98, reflecting continued demand for dollar exposure as risk sentiment deteriorated.
Source: ICE U.S. Dollar Index (DXY); FX futures market pricing
The risk-sensitive Australian dollar tumbled as much as 1.2% before paring losses to 0.3%, last trading at $0.7096. The New Zealand dollar was last down 0.2% at $0.5979, after retracing an earlier 0.8% decline.
In offshore trading, China’s yuan was 0.1% weaker at 6.868 per dollar, after the People’s Bank of China set a weaker daily onshore fixing for the currency. China is a major energy importer and a key buyer of Iranian oil, keeping the currency sensitive to energy-related geopolitical risk.
Source: People’s Bank of China; FX market pricing