The safe-haven currencies such as the U.S. dollar and the Japanese yen strengthened against their major currencies in the Asian session on Monday amid risk aversion among traders, as stronger than expected U.S. employment data weighed heavily on the outlook for interest rates. It raised concerns that the U.S. Fed will likely hold interest rates at current levels or slow down the pace of reductions. Rising bond yields also hurt the safe havens.
The combination of rate fears and geopolitical tensions reduces investors' desire for riskier assets.
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Business News
May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.