Global Currencies Tumble Amid U.S. Dollar Rally and Middle East Tensions

The yen fell to a two-month low due to a strong U.S. dollar driven by robust jobs data and tensions in the Middle East. As the dollar surged, other major currencies, including the euro, faced declines. Expectations for Federal Reserve rate cuts have fluctuated, impacting global markets.

The Japanese yen saw its lowest point in almost two months as the dollar surged, influenced by strong U.S. job data and escalating Middle East tensions. The yen traded at 149.10 per dollar before recovering slightly to 148.40, marking a significant drop within the week.

This uptick in the dollar followed a U.S. jobs report revealing substantial job growth in September, a lower unemployment rate, and higher wages, which indicate a strong economy and led markets to adjust expectations for Federal Reserve rate cuts. Chris Weston noted that the prevailing economic environment boosts the case for U.S. equities and the dollar.

Meanwhile, geopolitical conflicts continue to pose risks to market sentiment as Israel targeted Hezbollah and Gaza ahead of the anniversary of last year's October 7 attacks. In commodities, Brent crude oil eased 0.4% after substantial gains, while other currencies like the euro and sterling saw declines against the dollar.

(With inputs from agencies.)