Dollar Spikes Amid Geopolitical Tensions and Safe-Haven Rush

The dollar surged on Friday, marking its most significant single-day rise in a month as geopolitical tensions reignited safe-haven demand. In response to Israel's military strikes against Iranian targets, investors turned to the dollar, bolstering the currency amid fears of wider hostilities in the region.

President Trump pressured Iran for negotiations, emphasizing the potential for more severe actions. The dollar index rose nearly 0.9%, reversing strengths in the Swiss franc and Japanese yen. While ongoing talks in Oman regarding Iran's uranium program continue, the currency markets remain jittery.

Despite these developments, the dollar's overall trajectory remains uncertain. Analysts predict temporary distortions in the currency trend due to geopolitical stress, though looming Federal Reserve decisions might stabilize the financial landscape. Meanwhile, gold prices and crude oil surged, reflecting broader economic anxieties.

(With inputs from agencies.)