The U.S. dollar maintained its recent upward momentum on Thursday, remaining close to a two-month high as renewed hostilities in the Gulf boosted oil prices and dampened investors’ appetite for risk. Meanwhile, the Japanese yen hovered near the critical 160-per-dollar level, keeping traders alert for potential intervention by Japanese authorities.
Iranian attacks on Kuwait on Wednesday reportedly caused damage to an airport and injured dozens of people, while U.S. military strikes near the Strait of Hormuz heightened concerns over the fragility of the current truce and weakened hopes for a near-term diplomatic resolution.
The euro traded at $1.1604, while the British pound stood at $1.3424, both little changed during Asian trading hours.
The risk-sensitive Australian dollar was steady at $0.7132, while the New Zealand dollar rose 0.2% to $0.5872, recovering from a one-week low.
The U.S. Dollar Index (DXY), which measures the dollar against a basket of major currencies including the euro and yen, edged up to 99.47, after reaching its strongest level since 7 April during the previous session.
The Japanese yen traded at 159.91 per dollar, slightly retreating from the psychologically important 160 level it touched on Wednesday for the first time since 30 April. The move prompted renewed warnings from Japanese authorities.
Market participants widely view the 160 yen-per-dollar level as a potential trigger point for official intervention aimed at supporting the Japanese currency.
In cryptocurrency markets, Bitcoin fell 2.8% to $63,119.50, marking its lowest level in four months, while Ether also dropped to a four-month low of $1,786.
Source: Reuters
