Currency Traders Turn to Options Market for Geopolitical Havens
- Long-volatility exposure serves as hedge after Israel strike
- Swiss franc in demand as oil-linked currency volatility rises
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Currency markets are in full risk-off mode amid fears of a widening conflict in the Middle East, with traders rushing for safe havens in both spot and options.
The dollar gained versus all Group-of-10 currencies except for the Swiss franc and the Japanese yen on Friday, after reports that Israel launched a retaliatory strike on Iran. The Bloomberg Dollar Spot Index rose for a seventh day in eight.