Dollar Surge Amid Global Market Turbulence

The dollar soared to a more than three-month high on Friday, marking its second weekly gain since the war in Iran began, positioning it as the last safe-haven currency amid global market upheaval. Market instability propelled investors towards the dollar, as turmoil heightened across sectors.

The euro depreciated to its weakest since November, with Japan warning of potential interventions to counter the yen's 20-month low. Rising oil prices prompted the U.S. to allow limited sales of Russian petroleum products despite sanctions, as Iran escalated its attacks on Middle Eastern oil and transport facilities.

The dollar index, gauging the greenback against several currencies, and the yen both reacted to global tensions and energy challenges. With Japan facing a double strain from the regional crisis and currency depreciation, markets are now focusing on upcoming central bank meetings in the U.S., Europe, and Japan for further policy implications.