The U.S. dollar ended the week at its highest level in 2026, strengthening its position as the primary "safe haven" for investors amid rising tensions in the Middle East and a surge in energy prices, Bloomberg reports.
The Bloomberg Dollar Spot Index rose by 0.6% on Friday, marking the second consecutive week of gains. Since the beginning of March, the index has increased by 2.5%, reflecting a sharp turnaround in market sentiment following the onset of the conflict between the U.S., Israel, and Iran.
The dollar is supported by the weakening of other currencies and rising oil prices — quotes have exceeded $100 per barrel. Currencies of energy-importing countries, including the Japanese yen and the euro, have been particularly pressured.
"The flow of negative geopolitical events from the Middle East increases the attractiveness of the dollar as a safe-haven currency. It is hard to imagine that this will not continue in the short term, given that there are no signs of an end to the conflict," said Pioneer Investments strategist Paresh Upadhyaya.
Last year, the dollar was the weakest among 17 major world currencies, according to Business Insider. The dollar index (DXY), which measures its value against other foreign currencies, has decreased by about 10% since the beginning of the year.
