US dollar hits one-week high as Middle East tensions rise
The dollar hit a one-week high as US-Iran airstrikes dented peace hopes. Meanwhile the yen neared intervention levels as markets await key US inflation data.
The dollar index rose 0.13% to 99.426 late morning the following day as escalating military tensions in the Middle East drove safe-haven demand. This move pushed the greenback to its highest level since May 21 after airstrikes between the United States and Iran dented hopes for a peace deal. For investors, the geopolitical flare-up shifts focus back to inflation risks and the Federal Reserve's restrictive policy path.
### Geopolitical Conflict Disrupts Peace Hopes Airstrikes targeted a U.S. airbase and an Iranian drone operation near the Strait of Hormuz late morning the following day. These events followed President Donald Trump's rejection of a reported compromise deal with Tehran.
