Oil Shock Sends Shivers Through Currency Markets

Currency markets have been subdued this Thursday as investors weigh in on the recent surge in oil prices and global bond yields. Brent crude futures remain above $100 a barrel after breaching that level on Wednesday, with Iran and the US engaging in the biggest wave of attacks on shipping since the start of the war.

The fresh energy-induced inflation pressure has sent global bond yields back up, with benchmark 10-year Treasury yields hitting their highest levels since 2023. The buyback programme of longer-dated bonds also disappointed.

Despite this, the greenback found only marginal relief and eased against major peers after an earlier move higher. The euro and sterling both edged up, last at $1.1639 and $1.3555 respectively.