Trump Blinks: US-Iran Tensions Spark Safe-Haven Surge
US President Trump has held off on launching strikes against Iran after being assured that a deal to secure safe passage through the Strait of Hormuz is close. The development comes as markets await updates on the situation in the Middle East, which had caused a stir over the weekend.
The US dollar and yen are expected to rise as investors seek safe-haven assets during times of uncertainty. In contrast, currencies reliant on commodity exports such as the Australian dollar, Canadian dollar, and New Zealand dollar may decline. Cryptocurrencies may also experience volatility in light of the ongoing tensions.
Investors typically opt for 'risk-off' strategies during periods of heightened global risk, which often involves buying safe-haven assets like government bonds, gold, and currencies such as the yen and Swiss franc.