From Yahoo Finance: 2025-06-13 16:37:00

The dollar showed a muted rally against major peers after Israel’s strikes on Iran, suggesting its role as a global haven currency is fading. A Bloomberg gauge of the US dollar gained 0.6% post-attack, but closed just 0.2% higher in New York. Middle East tensions are seen as a risk rather than a game-changer for the bearish dollar view.

The 10-year US Treasury yield rose five basis points on Friday due to surging oil prices stoking inflation worries. Despite the US dollar’s recent decline, options traders have moderated their negative views and are expecting a pause in the greenback’s sharp drop. Analysts attribute the dollar’s buoyancy to the US’s position as the world’s largest oil producer.

The Bloomberg Dollar Spot Index has fallen 8% this year due to Trump’s trade policies eroding investor confidence in the US economy. Analysts project trillions of dollars in added federal deficit from proposed tax legislation. DZ Bank’s Sonja Marten said it would take a complete Middle East escalation for the dollar to extend gains. Hedge funds and asset managers increased bets on the dollar’s decline to $15.9 billion.



Read more at Yahoo Finance: Dollar’s Tepid Rebound Reinforces Questions Around Haven Role