Around 9PM on Saturday night, at the intersection of Hverfisgata and Ingólfsstræti, three men jumped from a car shouting racist slurs, before attacking a nearby group of pedestrians, RÚV reports.
By the time police arrived at the scene, the three men were gone, and they have yet to be apprehended.
According to police reports the victims were not familiar with their assailants and the attack was completely unprovoked.
One of the victims was brought to hospital for treatment.
Earlier today the Metropolitan Police published a statement on their Facebook page, announcing the trial launch of an enhanced security initiative in the downtown area.
The program will focus on reducing violent crime in the 101 post-code, particularly late at night and on weekends.
This will be done by increasing the number of uniformed officers on the street, especially during the hours of 2AM to 5AM Friday and Saturday nights, which police logs indicate to be when most violent assaults take place.