Asia FX slides as Israel attacks Iran, dollar jumps on safe-haven demand

June 12, 2025 11:41 PM PDT | By Investing

Asia FX slides as Israel attacks Iran, dollar jumps on safe-haven demand — Image source: Kalkine Media

Israel strikes Iran, investors flock to safe-haven assets

Early Friday’s Israeli strikes targeted "dozens" of Iranian nuclear, missile, and military sites, prompting sirens in Israel and explosions in Tehran.

Iran activated air defence systems and warned of imminent retaliation.

Israeli Prime Minister Benjamin Netanyahu stated in a recorded video that the military campaign would continue "for as many days as it takes to remove this threat," urging citizens to brace for a potential Iranian response.

These developments led to a risk-averse mood with investors flocking towards safe haven assets like the U.S. dollar, bullion.

Oil prices surged as much as 13% on Friday on supply disruption fears, as Iran is a major oil producer.

S.Korean won, Aussie dollar drop over 1%

In Asia, the South Korean won led losses, with the USD/KRW pair jumping more than 1.2% as geopolitical risk dampened regional sentiment.

Australia’s dollar AUD/USD pair dropped about 0.9%.

The Chinese yuan’s onshore USD/CNY and offshore USD/CNH pairs were both trading 0.2% higher on Friday.

The Japanese yen’s USD/JPY pair was largely unchanged, supported by its safe-haven appeal.

The Singapore dollar’s USD/SGD rose 0.5%, while the Indian rupee’s USD/INR pair jumped 0.6%.

Elsewhere, the Indonesian rupiah’s USD/IDR pair, the Philippine peso’s USD/PHP, and the Malaysian ringgit’s USD/MYR, all gained nearly 1%.

This article first appeared in Investing.com

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