Safe-haven demand lifts the US Dollar Index to 101.18 as military strikes and diplomatic deadlock escalate geopolitical risks.
The US Dollar Index (DXY) rose to a one-week high near 101.18 on Tuesday, driven by heightened US-Iran tensions and safe-haven flows. President Donald Trump dismissed talks with Tehran, warning of further military action against Iranian nuclear sites.
The index, tracking the USD against six major currencies, extended gains as the US conducted a tenth night of strikes in the region. Analysts at ING noted upside risks, citing complacency in markets and potential for DXY to retest 101.50. OCBC warned a broader escalation could push Brent crude above USD100/bbl.
Trump’s hardline stance and ongoing military exchanges dampened hopes for de-escalation, reinforcing demand for the Greenback amid rising geopolitical uncertainty.