US Dollar Gains as Oil Surges
The US Dollar Index, which tracks the currency against six major global currencies, rose above the 100 mark for the first time since late 2025.
Despite attempts by Washington and the International Energy Agency to alleviate market strains, Brent crude has remained near "$100 per barrel" as ongoing confrontations following US and Israeli attacks on Iran jeopardize worldwide energy supplies.
With persistently elevated oil prices and sustained uncertainty, investors increasingly anticipate that central banks will adopt a cautious stance on cutting interest rates, as rising energy costs risk driving up inflation.
Current predictions now indicate the US Federal Reserve will reduce interest rates once this year, compared to two reductions previously projected.
As the US Dollar Index climbed, the euro–US dollar exchange rate dropped to its lowest point since August 2025 at 1.1433, while the US dollar–Swiss franc rate tested its highest since Jan. 23, 2026, at 0.7895, and the US dollar–Japanese yen reached its peak since July 2024 at 149.68.
Analysts note that the surge in energy costs and escalating geopolitical tensions have steered investors away from riskier assets and toward the US dollar, which is "traditionally viewed as a safe haven during periods of global instability."
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