Dollar Regains Safe-Haven Status After U.S. Strikes on Iran
The dollar rallied sharply following U.S. strikes on Iran, as investors sought the familiar protection of the greenback while geopolitical tensions in the Middle East intensified. Risk assets softened and safe-haven demand pushed the dollar higher, reasserting its traditional crisis-era role and unsettling some currency and bond markets.
The move matters because sustained dollar strength can tighten global financial conditions and raise borrowing costs for emerging markets; several EM currencies, including MNT, showed signs of weakness in early trading. Market participants will watch whether the rally holds or reverses with developments on the ground, since de-escalation could quickly shift flows back into risk assets. For now, the dollar’s resurgence underscores its central role in times of geopolitical stress.