Geopolitical risks drive modest support for the US Dollar Index, keeping it near the 100.00 level despite limited gains.
The US Dollar Index (DXY) remains steady around the 100.00 mark, supported by heightened US-Iran tensions that have increased demand for safe-haven assets. The index, which measures the greenback against a basket of major currencies, showed little movement despite a slight uptick during the Asian trading session.
Earlier, the DXY had struggled to extend gains, reflecting mixed market sentiment amid broader geopolitical uncertainties. The 100.00 level has acted as a psychological support, with traders cautious ahead of key economic data releases later this week.
Market reaction has been muted, as investors weigh the impact of geopolitical risks against expectations for US monetary policy. The dollar’s resilience contrasts with recent weakness in risk assets, underscoring its role as a haven during periods of uncertainty.