Japan, China lead foreign government retreat from U.S. Treasuries as Gulf War fallout stokes currency fears

The outbreak of the U.S.-Iran conflict and the resulting surge in crude oil prices triggered a broad selloff, sending the Japanese yen and other Asian currencies tumbling. The move reflects a sharp risk-off reaction with pressure on FX markets and a likely spillover into global asset prices as energy costs spike.

Analysis

The outbreak of the U.S.-Iran conflict and the resulting surge in crude oil prices triggered a broad selloff, sending the Japanese yen and other Asian currencies tumbling. The move reflects a sharp risk-off reaction with pressure on FX markets and a likely spillover into global asset prices as energy costs spike.