Shortly after the world’s largest oil processing plant in Saudi Arabia was attacked in a suspected terrorist drone attack, the financial markets are gradually feeling the pain. A few hours after the incident, the US dollar is significantly losing ground against various currencies of oil-exporting countries. The Canadian dollar, for example, gained 0.4 percent to trade at 1.3233 per US dollar. In a similar move, the Norwegian Krone gained about 0.5 percent to exchange at 8.9363 per dollar.
The observed synchronous trend in these two currencies is associated with the fact that the two countries are major oil exporters around the globe.
Other currencies have been slightly hit in a similar way to the US dollar include the Indian Rupee, which fell by almost 0.7 percent against major currencies. This is because India, similar to the US, is a major oil importer of the crude substance.
Other currencies considered as a safe haven in the forex industry that remained unaffected by the flop include the Swiss Franc and the Japanese Yen. The Yen, for example, rose by 0.3 percent to trade at 107.79 per dollar. The Swiss Franc also rose to 0.9883, a 0.4 percent gain against the dollar. Other notably affected trades in the financial markets include the gold price, which shot up by 1percent.
In general, it has been quite a hefty week in the financial markets. The jitters that have been experienced in the market so far as a result of the terrorist attack on the Saudi oil industry already add more pressure to the straining markets.
The Sterling Pound is already feeling the pressure following the renewed efforts by the British Prime Minister Boris Johnson to secure a deal to leave the European Union within two months. Gains that have been previously made by the Sterling Pound against the dollar were lost by $0.3.
In China, the country is experiencing a major slowdown, which deepened further in the month of August and expected to extend into September and October. The slow industrial production in the country led to the Chinese Yuan, losing 0.25 percent to trade at 7.30631 per dollar.
Major countries across the globe are expected to take quick measures to tame jitters within the exchange market. The Federal Reserve is, on Wednesday, expected to adjust the interest rate even as the bank of Japan has already instituted the necessary policies to ensure a stronger Yen ahead of today’s public holiday.