Analyst: Market Expectations of Oil Price Increases Triggered by Iran War May Prompt Some Central Banks to Raise Interest Rates

Odaily News Derek Halpenny, an analyst at Mitsubishi UFJ, stated in a report that market expectations of oil price increases triggered by the Iran war may prompt some central banks to raise interest rates, but this scenario would only benefit currencies from economies with resilient growth. He said, "Raising interest rates under weak economic conditions is generally seen as negative for the currency." Against the backdrop of market expectations for further rate hikes and potential improvements in terms of trade due to rising energy prices, the Australian dollar has become one of the best-performing G10 currencies. LSEG data shows that the market currently expects an 80% probability of the Reserve Bank of Australia raising rates by 25 basis points on Tuesday. (Jin10)