Surge in the currencies of oil-exporter countries aftermath of Saudi attack, Dollar drops
The currencies of oil exporters and safe haven countries experienced a surge in their values on Monday after a Saudi Arabian oil refinery was attacked by a droned this Saturday, meanwhile value of Dollar dropped. This drone attack was responsible for disrupting global oil supply-chain, increasing the geopolitical tension in the Middle East. The market witnessed a fifth of surge in oil prices after the attack, causing a disruption of 5% in global oil supply. The value of Canadian Dollar went up from 0.4% to 1.3233 a Dollar. The currency of Norway – Krone went up by 0.5% to 8.9363 a Dollar. Both countries are one of the major oil exporters. India’s Rupee fell by 0.7%, because India is a major crude oil importer. A Yemeni Houthi group of terrorists claimed the responsibility of attack. However, American government suspects involvement of Iran behind the attack. President Trump responded to the attacks that Washington is prepared for the retaliation. President Trump had also authorized the release of oil from the SPR, which stands for U.S. Strategic Petroleum Reserve.
On the other hand, safe havens like Swiss Franc and Japanese Yen was also one of the currencies that enjoyed the surge, Yen went up by 0.3% to 107.79 a Dollar, and Franc rose by 0.4% to $0.9883 a Dollar. Gold too witness a rise of 1%, meanwhile Dollar’s value leaned lower to 98.162 against a group of various currencies. Sterling witnessed a fall of 0.3%. Chinese Yuan fell by 0.25%. Investors from the US are expecting the Federal Reserve to cut down rates. The only thing they are not sure about is how much the rate will fall. However, some traders are speculating that the Fed will cut rates by a quarter of percentage within this week.