Yen and Euro Rally as Global Central Banks Hold Rates Amid Oil Shock

NEW YORK/LONDON, March 19 - The Japanese yen and euro strengthened sharply while the U.S. dollar eased against major peers. Central banks across Europe, Japan, and the UK held interest rates steady amid mounting inflation pressure from surging oil prices.

The European Central Bank left rates unchanged but warned of growth and inflation risks tied to Middle East conflict escalation. The euro climbed 0.63% to $1.15225.

The Bank of Japan maintained its tightening bias despite holding rates. The yen jumped 1% to 158.14 per dollar.

The Bank of England voted unanimously to hold rates, citing war-related inflation risks. Sterling rose 0.82% to $1.3368.

Oil prices breached $110 per barrel after Iran attacked regional energy infrastructure - a direct escalation following Israel’s strike on South Pars. Brent crude surged 3.6% to $111.15.

The Fed held rates Wednesday, projected higher inflation, and signaled only one rate cut in 2024. The U.S. Dollar Index fell 0.55% to 99.62 - still near its 10-month high.

Bitcoin fell 2.69% to $69,320; Ethereum dropped 3.1% to $2,120.