US-Iran Tensions Push Oil Prices Up 10%, Strengthening Dollar and US Interest Rates
On July 13, escalating US-Iran tensions caused international oil prices to surge nearly 10%, accompanied by a strong dollar and rising US Treasury yields. Following comments by Federal Reserve Board member Christopher Waller, the futures market increased its bets on a rate hike this month to around 40%.
As the conflict between the United States and Iran intensified, international oil prices surged nearly 10% in the New York market on July 13, leading to a general strengthening of the dollar. It is important from an investor's perspective that volatility has increased.
In the New York foreign exchange market, the dollar-yen exchange rate was recorded at 162.453 yen. The previous closing was at 161.737 yen.
On the same day, the dollar index at one point showed 100.916, experiencing a slight decline from the previous closing of 100.963. There was significant fluctuation during trading.
In the US bond market, the yield on 10-year Treasury bonds stood at 4.579%, while the 2-year yield was recorded at 4.227%. A flattening trend of the yield curve was observed.
The 30-year yield was reported at around 5.077%. There was a phenomenon of weakness in short-term securities and a narrowing of the interest rate gap between short and long-term instruments.
After comments by Federal Reserve Board member Christopher Waller, the possibility of a rate hike in the futures market for this month rose to the mid-40s percent at one point, compared to around the low 30s percent before.
Market participants are closely watching the Federal Open Market Committee (FOMC) meeting scheduled for July 28-29. The geopolitical risks and the release of inflation indicators on that day seem to have influenced rate expectations.
Sources: 연합인포맥스
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