In response to escalating geopolitical risks, the US dollar has seen a notable uptick against major currencies. Investors are flocking to the greenback, often considered a safe-haven asset in times of international uncertainty. The recent US strike in Iran has amplified concerns over stability in the Middle East, prompting market participants to reassess their portfolios amid the potential for further conflict. Key global currencies such as the euro and yen experienced increased volatility as traders digested the implications of the attack and awaited Iran’s next move.

Market analysts point to several factors contributing to the dollar’s resurgence:

  • Heightened demand for USD as a protective asset in volatile conditions.
  • Speculation on Federal Reserve’s stance, given uncertain economic aftermath from geopolitical tensions.
  • Reduced appetite for riskier assets, influencing currency flows away from…