Escalating tensions in the Middle East drive up safe-haven demand, with the U.S. dollar index approaching its yearly high.

BlockBeats news, October 7th — As oil prices rose and tensions in the Middle East further escalated, investors rushed into safe-haven assets, and the U.S. dollar strengthened noticeably on Wednesday. After Iran increased attacks on ships in the Strait of Hormuz, the U.S. Dollar Index DXY rose by as much as 0.5% and moved higher in tandem with oil prices, and is now approaching a new high for the year. Among G10 currencies, almost all currencies fell against the U.S. dollar, with the euro performing the weakest, underperforming other major currencies.

Kathleen Brooks, research director at XTB, said in a report: "The U.S. dollar is playing the role of a countercyclical asset, attracting safe-haven inflows while other asset classes are being sold off." (Jinshi)