The US dollar moved higher in Asian trading on Friday as renewed tensions between the United States and Iran pushed investors toward safer assets.
The latest rise came after fresh attacks and sharp exchanges between Washington and Tehran, increasing worries about the fragile ceasefire that has been in place for the past month.
At the same time, Iran is still reviewing a US proposal aimed at ending the conflict, but uncertainty in the region continues to pressure global markets.
Rising tensions also pushed oil prices higher. US crude futures jumped about 3% in early trading, which added to investor concerns and boosted demand for the dollar as a safe-haven currency.
The dollar index, which tracks the US currency against major global currencies, climbed to 98.235 points. This marks its second straight day of gains after earlier hitting a two-month low on hopes of a peace agreement between Washington and Tehran.
Even with the recent rebound, the dollar is still expected to end the week with only minor overall changes.
In other currencies:
- The British pound traded at $1.3555 and is heading toward its first weekly loss since March, as investors watch political developments and local election results in the UK involving Prime Minister Keir Starmer.
- The euro stayed steady at $1.1727 and is on track for a small weekly gain.
- The Australian and New Zealand dollars also remained relatively strong after improved market sentiment earlier in the week.
Meanwhile, Japan’s yen stayed mostly stable at 156.995 per dollar after recent comments and actions by Japanese officials helped slow the currency’s decline.
