Geopolitical tensions between the US and Iran drive investors toward safe-haven assets, weighing on the Australian Dollar.
The Australian Dollar fell 0.32% to 0.6930 against the US Dollar in early European trading, underperforming major peers amid a risk-off mood. Escalating US-Iran tensions and rising oil prices fueled caution, dampening appetite for risk-sensitive currencies.
S&P 500 futures declined 0.65% to 7,525, while the US Dollar Index rose 0.15% to 101.15. The AUD was the weakest performer among major currencies, reflecting broader market unease ahead of key US inflation data.
Investors shifted toward safe-haven assets as higher energy costs threatened global economic stability. The move underscored concerns over reduced government investment amid elevated geopolitical risks.