The U.S. dollar has reclaimed its status as a global safe‑haven asset as geopolitical tensions escalate following a wave of U.S. and Israeli strikes on Iran that have rattled global financial markets, Reuters reported on Monday. The U.S. Dollar Index, which measures the currency against a basket of major peers, rose nearly 1%, marking its strongest one‑day gain in seven months as investors scrambled for safe assets amid heightened uncertainty.
The rally underscores the dollar’s traditional appeal in crisis periods, reinforced by the depth and liquidity of U.S. financial markets, particularly Treasury securities. Analysts said that while doubts about the dollar’s crisis‑era utility had emerged after its muted performance during the 2025 tariff‑related sell‑off dubbed “Liberation Day,” the current surge shows investors still view the greenback as a reliable shelter in times of geopolitical stress. Factors supporting the dollar include the United States’ position as a net energy exporter, which helps insulate the economy from volatile oil price shocks. However, some experts cautioned that the dollar’s haven appeal could be tested in scenarios unrelated to energy markets or rooted in domestic U.S. instability.
In parallel financial markets, other traditional safe‑haven assets such as gold and the Swiss franc also saw increased demand, while riskier assets like equities faced pressure as investors rebalanced portfolios toward shelters amid fears of prolonged conflict and rising inflationary risks tied to surging energy costs.