Dollar Gains for Second Week as Euro and Yen Hit Lows
The dollar rose for a second week as Middle East tensions boosted safe-haven demand. High oil prices pushed the euro and yen to multi-month lows on Friday.
The United States dollar remained on track for its second straight weekly gain on Friday as escalating conflict in the Middle East spurred a flight toward safe-haven assets. This geopolitical instability has particularly weighed on energy-sensitive currencies, with Brent Crude Oil prices surging and putting pressure on major importers. While the American economy remains relatively insulated due to its status as a net energy exporter, other regions face significant headwinds. The Euro / U.S. Dollar exchange rate fell to its lowest point since August, while the U.S. Dollar / Japanese Yen pair saw the yen tumble to a 20-month low. Economies in Japan and the euro area are heavily dependent on crude imports, making them vulnerable to the current price spikes. In contrast, the dollar index, which tracks the greenback against a basket of currencies, rose 0.51% to 100.22, marking a 1.4% increase for the week.
