U.S. Dollar Rises Amid Israel-Iran Tensions

The U.S. dollar surged against top global currencies such as the euro and yen on Friday as investors flocked to safe-haven assets in light of escalating geopolitical tensions sparked by an Israeli attack on Iran. Israel launched significant strikes on Iran, targeting nuclear facilities and missile factories, resulting in the deaths of several military commanders. In response, Iran allegedly sent around 100 drones towards Israel, a claim a Tehran source denied.

U.S. President Donald Trump, Israel's chief ally, urged Iran to negotiate on its nuclear ambitions, suggesting that Tehran's defiance brought on the attack. The dollar achieved a 0.46% rise against the Japanese yen and a 0.23% gain against the Swiss franc, reversing losses from two previous sessions.

Despite the dollar's rise, it faces a weekly loss against the yen and franc, compounded by worries over Trump's trade tariffs. Juan Perez from Monex USA observed that the dollar typically strengthens amid physical uncertainty and conflict, as seen with the Israel-Iran situation, while tariffs continue to concern investors. Meanwhile, the euro dropped 0.35% versus the dollar, while gold and oil prices rose sharply amid safe-haven demands.

(With inputs from agencies.)