The Swiss franc reached its highest point in over a decade against the euro after recent US and Israeli military actions against Iran heightened investor concerns. The moves have triggered a flight to safer assets, with the US dollar also experiencing a five-week high.
The military strikes resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, sparking a potential succession crisis. Iran retaliated with attacks on US and British oil tankers, escalating tensions further across the Middle East region, particularly affecting Israel and its neighboring nations.
As investors weighed the impact of the conflict, oil prices soared by 9%, posing additional challenges for energy-dependent currencies. Analysts noted that the situation might prompt a cautious stance from global central banks, including the Bank of Japan, affecting future interest rate decisions.
(With inputs from agencies.)