Deutsche, JPMorgan Favor Energy-Linked Currencies Amid Iran War

Investors are doubling down on bets that energy-linked currencies will keep rising as the US-Iran conflict reshapes global oil markets, with Deutsche Bank, JPMorgan Chase & Co. and Pioneer Investments urging clients to buy into the trade.

Strategists from JPMorgan and Deutsche recommend the Norwegian krone and Australian dollar, which got a boost Monday after Brent futures rose above $108 a barrel, as efforts to resume peace talks stalled. The currencies are becoming more attractive as proceeds from energy sales boost the economies and allow for tighter monetary policy — markets are penciling in interest-rate hikes this year in both countries.