Market News
US dollar firms versus yen, Swiss franc as Middle East tension simmers - REUTERS
Summary
- Markets fear Israel-Iran fighting worsens into regional conflict
- Monetary policy decisions by Fed, BOJ, BoE due this week
NEW YORK, June 16 (Reuters) - The dollar strengthened against the safe-haven yen and Swiss franc on Monday, but weakened against most major currencies, as investors monitored the fighting between Israel and Iran for signs it could escalate into a broader regional conflict and braced for a week packed with central bank meetings.
Tehran, however, has asked Gulf state leaders to press U.S. President Donald Trump to use his influence on Israel for a ceasefire in return for Iran's flexibility in nuclear talks. That has partly helped the dollar recoup losses against the yen and Swiss franc.
Still, market participants mulled the prospect that Iran might seek to choke off the Strait of Hormuz - the world's most important gateway for oil shipping. This could raise broader economic risks from disruptions in the energy-rich Middle East.
Meanwhile, the U.S. military moved a large number of refuelling aircraft to Europe to give Trump options as Middle East tensions rise, and the U.S. aircraft carrier Nimitz was heading to the Middle East on a pre-planned deployment.
The dollar, which until recently had always been the ultimate safe haven in times of geopolitical or
