Dollar Finds Support Amid Hawkish Fed Bets, Middle East Tensions

The US dollar has stabilized its recent gains in mid-session trading due to a combination of safe-haven demand and hawkish Federal Reserve expectations.

Middle East tensions have prompted investors to seek the relative safety of the US dollar, a traditional safe-haven asset. Recent developments, including heightened military activity and diplomatic standoffs, have increased uncertainty in global markets.

The dollar index, which measures the greenback against a basket of six major currencies, remains near its highest level in several weeks, reflecting investor caution and shifting rate expectations.