The US dollar has shown trends of steady increase against major currencies such as the euro and yen, at a time when the conflict in the Middle East is increasing. While Israel launched an attack against Iran, with a expectation expected, the US dollar remained strong and achieved 0.3% to 143.88 against the Japanese yen and 0.1% to 0.8110 francs against the Swiss currency, according to a Reuters report. Israel and Iran are currently stuck in a great geopolitical conflict, with the United States already moving its military resources to the Middle East. Israel on Friday launched a barrage of strikes across Iran and attacked core facilities and rocket factories, which made things even worse between the countries. According to the reports, an Iran’s retaliation is expected. Dollar’s boom through geopolitical crisis in the Middle East “historically speaking, with these kinds of geopolitical events, you get the knee-pressure reaction from the market … History says that we pass many of these things,” is Jack Janasiekicz, Portfolio Manager, at Natixis Investment Managers. “There are some things worth highlighting. How long does this operation last? The longer it goes, the worse it gets for trust, and it will eventually start to weigh on the market, ‘Jack continued. “This (Israel-Iran conflict) has just ended up on us, but the biggest concern remains rates and obstacles for global trade,” said Juan Perez, director of trade in Monex USA. “If you actually have a physical situation and the potential for armed conflict to be extended and the US dollar and gold jump in safe Haven assets. It’s a bit of a psychological reaction,” Perez continued according to Reuters. Perez also said it is difficult to correct every single item that has to face this year and crush the US market’s ability to believe in the US dollar.
US dollar advances against major currencies amid conflict in the Middle East, all you need to know | Today news
