Dollar Soars Amid Global Market Turmoil and Middle East Tensions

The dollar reached a more than three-month high on Friday and was set for its second weekly gain since the beginning of hostilities in Iran, as market turmoil positioned it as the last safe-haven currency. The euro marked its lowest since November, and Japan signaled readiness for intervention as the yen hit a 20-month low.

Economic uncertainties, particularly the mix of rising inflation and lower growth, have shifted market focus, said Gavin Friend from the National Australia Bank. The dollar index hit its highest since November 26, driven by its safe-haven appeal and the U.S.'s status as a net energy exporter.

Amid escalating conflict after recent U.S.-Iran airstrikes, the financial landscape remains volatile. The U.S. and its allies are adjusting approaches to currency intervention and energy policy, reacting to wider unrest and strategic shifts in central bank policies in light of rising energy prices and geopolitical tensions.