0816 GMT - The geopolitical risks associated with Israel's attack on Iran's nuclear facilities offer an opportunity for the U.S. dollar to strengthen, Francesco Pesole of ING writes in a note. The dollar's weakness following a soft U.S. CPI print appears exaggerated, and new geopolitical tensions provide the Fed with another reason to remain cautious, the foreign-exchange strategist says. The U.S. dollar would normally have rallied more, benefiting from the shock to equity and bond markets, but the drop in S&P 500 futures likely capped the gains, Pesole adds. What matters most now is the extent of the impact of the escalations on oil prices. Markets will have to add a "bigger risk premium" given the crucial role Iran plays in the global oil supply, Pesole says. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
June 13, 2025 04:16 ET (08:16 GMT)
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