The US Dollar is gaining strength, trading near 99.00, driven by escalating geopolitical risks in the Middle East and positive US economic data. Specifically, the intensifying US-Iran conflict, potential new strikes across Iran, and robust US services activity are contributing to the dollar’s rise.
- The dollar index rose back above 99.
- The US-Iran conflict intensified, including the sinking of an Iranian warship.
- The broader US-Israeli campaign against Iran has entered its sixth day.
- Treasury Secretary Scott Bessent said President Donald Trump’s recently announced 15% global tariff is likely to take effect later this week.
- US services activity rose to a more than 3½-year high in February.
- Private-sector employment growth exceeded expectations.
- Israel said it was launching new strikes across Iran as well as against Hezbollah infrastructure in Beirut.
This suggests a potential for continued dollar strength, especially if geopolitical tensions remain elevated. The combination of conflict in the Middle East and positive US economic indicators creates a supportive environment for the US Dollar, potentially making it an attractive asset for investors seeking safety and yield.