Iran’s retaliatory strikes against US targets lift the Dollar Index 0.25% amid fading hopes for a diplomatic resolution.
The US Dollar Index (DXY) climbed 0.25% to near 99.50 in Asian trading Thursday, driven by escalating US-Iran tensions. Iran’s Islamic Revolutionary Guard Corps (IRGC) launched attacks on US military bases, warning of stronger responses to further strikes.
The DXY, tracking the Greenback against six major currencies, strengthened as geopolitical risks rose. Earlier, US Central Command conducted strikes on Iranian boats, prompting Iran’s retaliation and dimming prospects for a peace deal.
Oil prices surged on the conflict, raising concerns over inflationary pressures. The Dollar outperformed most peers, with the Australian Dollar showing the largest decline.