Dollar Steadies Amid Geopolitical Tensions in the Middle East

On Monday, the U.S. dollar saw moderate strengthening as investors sought the safety of stable assets amidst rising tensions in the Middle East. This comes in the wake of U.S. attacks on Iranian nuclear sites. Market movements remain subdued as stakeholders watch for Iran's response to the attacks.

Oil prices surged to a five-month high, marking the most significant reaction in commodities following the U.S.'s recent actions. In contrast, global stock markets experienced a decline. The dollar gained broadly, standing 0.25% higher against the yen at 146.415 and other key currencies also reflecting its dominance.

Carol Kong, a currency strategist, noted the current wait-and-see market environment, stressing the potential inflationary impacts of the Iran situation outweighing economic concerns. Investors' caution reflects in currency movements, as market players anticipate potential political responses from major global powers.

(With inputs from agencies.)