New York FX Market: Bloomberg Dollar Index Hits Near Two-Month Closing High; Oil Prices Surge Again

MaticHoleFiller · 2026-03-13T01:05:06+00:00

As oil prices rise and Middle East tensions escalate, market risk-aversion sentiment intensifies, with the US dollar index reaching a two-month high. The Japanese yen has depreciated to 159, while the euro and British pound have also weakened, with expectations of continued pressure in the coming weeks. Crude oil prices have broken through $100 per barrel, with developments causing market concerns.

MaticHoleFiller

2026-03-13 01:05:06

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As oil prices surge, the Bloomberg U.S. Dollar Index hits a near two-month closing high, amid market concerns that shipping through the Strait of Hormuz will remain disrupted and that the Middle East conflict could last longer. The Japanese yen weakens to 159 against the dollar.

The Bloomberg U.S. Dollar Index rises by 0.5%. Iranian Supreme Leader Ayatollah Ali Khamenei, in his first public statement since taking office, said the Strait of Hormuz should remain closed.

BMO Asset Management Managing Director Bipan Rai noted that the dollar’s strength appears to align with rising risk aversion. He added that U.S. Treasury yields are rising across the board and U.S. stocks are falling, indicating that the market needs more than just “mood” to cool down this conflict.

Brent crude oil futures settled above $100 per barrel for the first time since August 2022, after two oil tankers were attacked in Iraqi waters. Oman has ordered all ships to evacuate the main oil export terminal, Mina Al Fahal.

USD/JPY rose 0.3%, reaching an intraday high of 159.43. Strategists believe the threshold for official Japanese intervention in the currency market remains high.

EUR/USD fell 0.5% to 1.1515, marking the third consecutive day of decline and the longest losing streak in four weeks.

Standard Chartered expects the pound and euro to continue underperforming in the coming weeks, as the Iran war damages economies reliant on energy imports.

GBP/USD declined 0.5% to 1.3344.

Goldman Sachs economists have delayed their next UK interest rate cut forecast from April to July, citing the surge in oil prices triggered by the Iran conflict.

USD/CAD rose 0.2% to 1.3626.

AUD/USD fell 1% to 0.7081.

NZD/USD declined 1% to 0.5855.

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