Dollar Holds Two-Month High as Geopolitical Volatility Persists

While President Trump’s recent intervention helped de-escalate the immediate clash between Iran and Israel, the underlying friction remains unresolved. Three months of conflict have locked oil prices at elevated levels, reinforcing the dollar’s role as the primary hedge against uncertainty. This trend has pushed the euro and sterling into a slide, while the Australian and New Zealand dollars face renewed downward pressure.

Market attention is now shifting toward upcoming U.S. inflation figures, which will likely dictate the Federal Reserve's next move on interest rates. A hawkish signal from the central bank could further solidify the dollar’s position, potentially weighing on global equities. Meanwhile, the yen’s continued decline is fueling speculation that Japanese officials may soon intervene to stabilize their currency.