The U.S. dollar jumped on Monday as soaring oil prices sent investors scrambling for cash on worries that a protracted Middle East war could severely disrupt energy supplies and hurt global growth.
The greenback pared some gains in the Asian afternoon on a Financial Times report that the G7 finance ministers will discuss on Monday a joint release of oil from emergency reserves coordinated by the International Energy Agency, which sent oil prices retreating slightly after they earlier spiked to just shy of $120 per barrel.
Still, the euro and sterling were left trading 0.6% and 0.7% lower, respectively, while the Aussie and even the safe-haven Swiss franc similarly weakened.
Reuters – March 9, 2026
“The U.S. dollar is finding no shortage of support from traditional haven considerations and obviously, the United States’ net energy exporter status in sharp contrast to most of Europe,” said Ray Attrill, head of FX strategy at National Australia Bank.
The broad market rout triggered indiscriminate selling across assets on Monday.
Stocks, bonds and precious metals slid as investors, spooked by the impact of surging oil prices on global inflation and economic growth, turned risk-averse and cashed in on some of their most profitable trades.
“The longer this goes on, the more exponential the damage becomes in a domino effect, which is exactly what oil is now showing to a market that saw some takes last week that things could be a lot worse,” said Michael Every, senior global strategist at Rabobank.
“If we are still in the same position this time next week, things could be quite terrifying.”
The euro was down 0.6% at $1.1548, having slid to a 3-1/2-month low earlier in the session, while sterling slid 0.7% to $1.3333.
