Dollar Surges Amid Middle East Tensions and Inflation Jitters

In a week marked by escalating tensions in the Middle East, the dollar is registering its most significant weekly rise in over a month, driven by fears surrounding the ongoing conflict between Israel and Iran. Investors, seeking safe havens, have fueled this surge in the greenback amid global economic concerns.

The dollar index, evaluating the U.S. currency against six major counterparts, is on track for a 0.55% rise this week. As Israel and Iran engage in continued military confrontations, other geopolitical factors, including potential U.S. intervention, are creating further market unease.

Meanwhile, inflation uncertainties spurred by rising oil prices add complexity for central banks. With Brent crude hovering near its peak, and different central banks grappling with whether to prioritize growth or restrain inflation, the global financial landscape remains unstable.

(With inputs from agencies.)