Stock Market

Story: Dollar Surges as Iran Crisis Sparks Safe Haven Rush

By Bruce Buterin

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The dollar's winning streak continues. Geopolitical tensions with Iran pushed the greenback higher for a second straight week, with investors scrambling for safety amid fears of…

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Iran cranked up the pressure Wednesday by announcing plans to boost uranium enrichment, basically thumbing its nose at global sanctions and diplomatic efforts.

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Markets don't mess around with this stuff.

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The dollar index climbed 0.4% to 105.37 Thursday, hitting levels not seen since late February.

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Fed Chair Jerome Powell didn't help matters Tuesday when he floated the possibility of more rate hikes if inflation stays stubborn.

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But oil tells the real story here. Brent crude surged to $85.43 per barrel, up 2.1% since Monday's open.

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Goldman Sachs analysts jumped in Thursday with a note saying dollar strength could persist "as long as tensions remain unresolved.

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The Iranian rial's getting crushed, naturally. Local reports Friday showed it trading around 500,000 rials per dollar in black markets, a brutal reminder of what happens when…

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China's playing it careful. The People's Bank let the yuan weaken slightly against the dollar Friday, probably trying to keep exports competitive while avoiding any appearance of…

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Australia's dollar took a hit too, falling 0.6% to $0.663. That's what happens when you're a trade-dependent economy and global tensions spike.

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European Central Bank President Christine Lagarde speaks next week. Her comments could move the euro, especially if she addresses how Middle East tensions might affect European…

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Barclays economists revised their forecasts, now expecting dollar strength through Q2. They're betting geopolitical developments will trump traditional economic fundamentals for…

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Gold jumped to $1,980 per ounce Thursday as investors hedged their bets. The precious metal often rallies alongside the dollar during crisis periods, breaking the usual inverse…

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Citigroup warned Friday that currency volatility could spike further if Iran or Western powers make unexpected moves.

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The Bank of Japan held rates steady Friday, sticking with ultra-loose policy despite the yen's safe haven status.

The Currency Analytics

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