The US Dollar Index climbs for a second day as fresh geopolitical risks boost demand for the safe-haven currency.
The US Dollar Index (DXY) traded near 99.50, extending gains to a six-week high as renewed trade threats weighed on risk sentiment. The index, which tracks the USD against six major currencies, reached 99.43 on Tuesday, its highest level since mid-July.
Prior to this rally, the DXY had struggled below 99.00 for most of August, pressured by expectations of Federal Reserve rate cuts. The shift follows escalating trade rhetoric, which has historically supported the dollar as a safe-haven asset.
Markets showed limited immediate reaction, with the index holding steady in early Asian trading.