Aussie Falls as Geopolitics Weigh on Markets

The Australian dollar came under pressure in Asian trading on Wednesday as risk aversion took hold of global markets. The Aussie weakened against other major currencies, weighed down by losses in South Korea and Japan, where semiconductor stocks suffered a broad selloff. Crude oil prices remained elevated due to ongoing tensions in the Middle East, fueling concerns about global inflation.

Ongoing disputes between the US and Iran have raised fears of disruptions to crude oil supplies. The Strait of Hormuz, a critical shipping route, has seen traffic dwindle as both countries assert control over it. US President Donald Trump stated there are no current peace talks between the two nations.