(Reuters) – Oil prices rose and Japan’s yen rallied on Friday on reports Israeli missiles have hit a site in Iran.
Iran’s Fars news agency said explosions were heard at an airport in the Iranian city of Isfahan but the cause was not immediately known. Several flights were diverted over Iranian airspace, CNN reported.
Israel had said it was going to retaliate against Iran after the latter’s April 13 missile and drone attack.
QUOTES:
CHRISTOPHER WONG, CURRENCY STRATEGIST, OCBC, SINGAPORE
“It’s a big dampener on risk assets, including equities and most currencies.
“While policymakers in the region and the U.S. have collectively taken a more proactive stance to calm FX markets, the re-emergence of geopolitical shocks may unnerve sentiments. Safe-haven proxies including gold, dollar, Swiss franc, and yen may see further demand in the interim.”
CHARU CHANANA, HEAD OF CURRENCY STRATEGY, SAXO, SINGAPORE
“A triple whammy of sorts for the markets, as Fed’s hawkishness keeps taking a leg up with each passing day and semiconductor earnings have so far fallen short to counter that risk off.
“To top it off, geopolitical risks have escalated again with Israel’s strikes on Iran, and risk sentiment could remain weak as we await more details on damages and casualties, and fears of an Iran response are also likely to underpin.”
