Published On 4/28/2026
Major financial institutions, including Deutsche Bank and JP Morgan, recommended investors bet on energy-related currencies, in light of the repercussions of the war in Iran and the rise in oil prices.
The recommendations, according to Bloomberg, indicated a preference for currencies such as the Norwegian krone and the Australian dollar, which benefited from improved terms of trade and higher energy revenues.
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These currencies have recorded gains since the outbreak of war, with the Norwegian krone rising by about 2.7% and the Australian dollar by 1%, to be among the best performing currencies among the G10 currencies.
Investors also prefer currencies with high returns in energy-rich economies, such as Kazakhstan, Brazil and Nigeria, at a time when the currencies of energy-importing countries are under pressure.
Pressure on imported currencies
On the other hand, the currencies of economies that depend on energy imports declined, as the euro fell by about 0.5%, while the Indian rupee fell by 3.4% and the Indonesian rupee by 2.5% against the dollar.
JP Morgan CEO Jamie Dimon had previously warned that the war could lead to persistent shocks in oil and commodity prices, which could push inflation higher and keep interest rates at high levels for a longer period.
He pointed out that these developments may reshape global supply chains and increase economic pressures, despite the continued relative strength of the US economy.
These movements reflect a shift in investor attitudes towards energy-related assets, in light of escalating geopolitical risks and market volatility.
