During the Asian and European trading sessions on Wednesday (March 11), global risk aversion sentiment reignited. The US Dollar Index rebounded after bottoming out, currently trading at 98.97 with a slight increase of 0.03%, having fallen to 98.69 (-0.25%) earlier in the session. After a brief positive outlook brought by Trump’s remarks on the global crude oil supply crisis, the situation did not last long. Tensions in Iran and blockage of the Strait of Hormuz have reignited global concerns, causing a sharp rise in the yield on the 10-year US Treasury bond and prompting the dollar to follow suit.
The US economy has been battling inflation over recent years, experiencing historic inflation during the pandemic period.
Now, the sudden outbreak of geopolitical conflict in the Middle East is posing new challenges to the US through turbulence in energy markets.
