· The dollar rallied against the safe-haven Japanese yen on Monday, but stayed weaker versus the Swiss franc, as market sentiment remained cautious amid concerns about a broader escalation of Mideast conflicts after the United States killed Iran’s most prominent military commander.
The yen surged on Monday to a three-month high around 107.75 versus the U.S. dollar, but was last down on the day as the greenback strengthened to 108.44 yen JPY=, up 0.2%.
The Swiss franc, another safe-haven currency, rose against the dollar, which fell 0.3% to 0.9690 franc CHF=.
The dollar index was down 0.2% at 96.674 .DXY.
The British pound was trading up 0.6% at $1.3158 GBP=D3 ahead of a crucial week when British lawmakers are due to reconvene to debate the Brexit deal Prime Minister Boris Johnson has agreed with Brussels.
· The Pentagon on Monday said that a U.S. general’s letter informing Iraq’s Defense Ministry that U.S.-led coalition troops would leave Iraq “was a mistake,” and American Defense officials insisted that the troops would remain there.
“That letter is a draft, it was a mistake, it was unsigned, it should never have been released,” Joint Chiefs of Staff Chairman Gen. Mark Milley told reporters hours after reports about the letter ostensibly written by Marine Brig. Gen. William Seely were published by the Reuters and AFP wire services.
“There has been no decision whatsoever to leave,” he said.
The United States has no plans to pull its troops out of Iraq, Defense Secretary Mark Esper said on Monday, following reports by Reuters and other media of an American military letter informing Iraq officials about the repositioning of troops in preparation to leave the country.
· Germany, Britain and France are scrambling to keep talks with Iran over its 2015 nuclear agreement alive despite Tehran having all but torn up the deal after the United States killed its top military commander.
In its first formal response to the killing of Qassem Soleimani in a drone strike at Baghdad airport, Iran said on Sunday it would abandon limits on its enrichment of uranium, further breaching a central component of the deal it struck with six major powers.
At the same time, EU foreign ministers will hold an emergency meeting in Brussels on Friday to discuss ways to save the deal via pressure if necessary, a step that could lead to the reimposition of U.N. sanctions on Tehran.
· Oil hits $70 a barrel as Iran, Trump trade threats
Oil prices steadied on Monday after Brent touched above $70 a barrel on rhetoric from the United States, Iran and Iraq that fanned tensions in the Middle East after a U.S. air strike killed a top Iranian military commander.
Prices pared gains during the session on growing doubts that Iran would strike back in a way that would disrupt oil supplies.
Brent crude futures LCOc1 settled at $68.91 a barrel, up 31 cents, after soaring to a high of $70.74 a barrel from Friday’s settlement.
U.S. West Texas Intermediate CLc1 crude was up 22 cents at $63.27 a barrel after hitting $64.72, its highest since April.
Reference: CNBC, Reuters
Thai
Eng