Traders Snap Up Protection Against Extreme FX Swings on War Risk
A television station broadcasts US President Donald Trump at the New York Stock Exchange (NYSE) on Monday.
Photographer: Michael Nagle/BloombergCurrency traders are loading up on protection against extreme moves as they brace for what comes next in the Middle East.
After an initial shock caused by the outbreak of war and oil’s surge to $100 a barrel, investors are taking advantage of a period of relative calm and buying low-probability options that pay off when currencies shift abruptly in either direction.