Dollar rebounds from 2022 lows

The US dollar rose today after Israel’s attack on Iran, sparking buying of the currency and a rise in other safe-haven assets, including the Japanese yen, the Swiss franc, and gold.

“The geopolitical escalation adds further uncertainty to already fragile sentiment,” said Charu Chanana, chief investment strategist at Saxo.

“If tensions escalate, particularly with any threat to oil supply routes, the risk-off trend could continue, maintaining upward pressure on crude oil and safe-haven assets.”

The dollar index against six other currencies rose 0.4%, last reading at 98.07. The Japanese yen and the Swiss franc, both traditional safe-haven currencies, gained 0.3% and 0.4%, respectively, against the dollar.

The dollar’s biggest gains against currencies positively correlated with risk sentiment were the Australian and New Zealand dollars, both of which fell by 0.9%.