Safe-haven currencies rose on Tuesday after Iran fired missiles at Israel, while the dollar also rose after US jobs data showed the strength of the labor market.
The missiles were launched in retaliation for Israel’s campaign against Hezbollah in Lebanon, and the White House National Security Council said that US President Joe Biden, in response, directed the US military to support Israel’s defenses and shoot down missiles targeting it.
Risk of exacerbation
“The market largely ignored the conflict in the Middle East last month, but a direct confrontation between Iran and Israel is always at risk of getting worse,” said Adam Bouton, senior currency analyst at Forex Live in Toronto.
The Japanese currency fell 0.04% against the dollar to 143.7 yen, and the dollar had recorded 144.53 yen before news of the missile launches at Israel came.
The dollar rose against the Swiss franc by 0.2% to 0.847 francs, and the Swiss currency achieved gains thanks to the missile news, before dissipating its gains and being traded near the level recorded before the news.
The dollar index rose 0.45% to 101.20 points.
US data today showed some strength in the economy, the day after Federal Reserve Chairman Jerome Powell ruled out cutting interest rates by another 50 basis points when the US central bank meets next month.
American jobs
The number of US jobs increased surprisingly in August after two consecutive months of decline, but job filling is consistent with a slowdown in the labor market.
The euro fell in recent trading by 0.57% to $1.1071 after cautious statements from European Central Bank officials.
“The latest developments reinforce our confidence that inflation will return to the target level in due course,” European Central Bank President Christine Lagarde told Parliament, adding that this should be reflected in the monetary policy decision on October 17.
As for cryptocurrencies, Bitcoin fell 2.89% to $61,943.
