SYDNEY (Reuters) - The dollar surged following an Iranian missile attack on Israel, driving investors to seek safe assets amidst fears of escalating conflict in the Middle East.
Early Asia trading saw the euro fall below $1.10 after its largest drop in nearly four months, while the yen and Swiss franc remained steady against the dollar. The New Zealand dollar saw a 1.1% decline, and oil prices rose 2.5%.
The dollar index rose about 0.5% to 101.2, its biggest gain since September, boosted by strong U.S. job openings data.
Markets are closely monitoring the situation in the Middle East, particularly oil prices, as Israel retaliates against Iran for the missile attack. Analysts expect further market movements based on Israel's response.
In Australia, upbeat retail sales data offset the impact of the Middle East tensions on the Australian dollar. Meanwhile, in New Zealand, cooling price pressures have increased expectations of a rate cut by the central bank next week.
Later today, a vice presidential debate and U.S. private payrolls data will be key events to watch, along with a dockworkers' strike on the U.S. East and Gulf Coasts.
Stay tuned for more updates on this developing situation.
Analysis:
The Iranian missile attack on Israel has sent shockwaves through global markets, leading to a surge in safe-haven assets like the U.S. dollar. Investors are closely watching the situation in the Middle East, as any further escalation could impact oil prices and market sentiment. The potential for a rate cut in New Zealand and key events in the U.S. today add to the uncertainty in financial markets. It's crucial for investors to stay informed and monitor developments closely to make informed decisions about their finances.
