Dollar Surges to Near One-Year High Amid Global Uncertainty
The US dollar is strengthening as global uncertainty and rising oil prices drive market volatility. The DXY index, which tracks the dollar against a basket of six major currencies, has surged to near its one-year high of 102.
Renewed trade tensions, including new tariffs imposed by President Trump on over 60 countries, are adding complexity to the global growth outlook and risk sentiment. Meanwhile, the European Central Bank (ECB) maintained interest rates despite rising inflation risks, with markets pricing in two rate hikes by year-end.
The dollar's strength is being driven by safe-haven demand and higher energy prices, which have pushed Brent crude oil to test the $100 mark. This has revived inflation concerns and reversed the recent decline in rates volatility.