The U.S. dollar surged broadly on Monday, propelled by heightened tensions in the Middle East, which sent oil prices soaring and drove investors to the refuge of the safe-haven currency. In parallel, anticipation for the Federal Reserve’s imminent interest-rate hike, the first in over two years, bolstered the dollar’s standing.
The U.S. dollar index, reflecting its performance against six major currencies, climbed 0.3% to 99.41, briefly peaking at a high not seen since early September. The euro dipped to a month-low of $1.153, and the British pound saw a similar decline to $1.3512, both losing 0.2%.
The geopolitical turbulence also spiked oil prices, unsettling investors and sending global bond yields to unprecedented heights. Brent crude touched $109.8 per barrel before stabilizing slightly. Diplomatic efforts to quell the U.S.-Israeli conflict with Iran are faltering, escalating supply jitters and reinforcing the dollar’s stronghold in an environment fraught with AI-related risks.
(With inputs from agencies.)
