Analysts: Market expectations that a war with Iran could trigger a rise in oil prices may prompt some central banks to raise interest rates.

In a report, Derek Halpenny, an analyst at Mitsubishi UFJ Financial Group, stated that the market anticipates that rising oil prices triggered by the Iran war may prompt some central banks to raise interest rates, but this would only benefit currencies of economies with resilient growth. He said, "Interest rate hikes are generally seen as bearish for currencies in a weak economic climate." Against the backdrop of market expectations of further rate hikes and the potential for improved terms of trade due to rising energy prices, the Australian dollar has become one of the best-performing G10 currencies. LSEG data shows that the market currently expects an 80% probability of the Reserve Bank of Australia raising interest rates by 25 basis points on Tuesday. (Jinshi)