Dollar Rallies Amid Middle East Tensions

The U.S. dollar saw gains alongside the safe-haven Japanese yen and Swiss franc following news of Israeli strikes on Iran. Two U.S. officials confirmed the strikes, with no American involvement reported, as explosions were reported near Tehran.

The dollar index, which tracks the greenback against six other currencies, rose 0.4% to 98.07 in early Asia trading. The dollar declined slightly by 0.35% against the yen at 143 per dollar, and the Swiss franc fell 0.39% to 0.807 per dollar.

Risk-sensitive currencies like the Aussie and New Zealand dollars fell by 0.9%. Meanwhile, despite a dip earlier due to U.S.-China trade developments and inflation data, the dollar is on track to decline against the yen, Swiss franc, and euro. In response to geopolitical tensions, crude prices increased by over $4, and gold reached new highs of 0.8% since early May.

(With inputs from agencies.)