The dollar approached its high for the year amid a resurgence of geopolitical risks

On October 7, the U.S. dollar rose to levels close to its 2026 high: investors are seeking safe-haven assets amid rising oil prices and escalating tensions in the Middle East, according to Bloomberg.

The Bloomberg Dollar Spot Index, which tracks the dollar’s exchange rate against a basket of global currencies, rose 0.5% on Wednesday, approaching a new high for the year. The U.S. currency showed this trend after attacks on ships by Iran in the Strait of Hormuz intensified in recent days, while Yemen’s Houthis continued to launch strikes on Saudi Arabian territory.

Against this backdrop, nearly all of the “Big Ten” currencies have weakened against the dollar, with the euro faring worse than all of its major rivals, Bloomberg notes. Earlier this week, the single European currency fell to its lowest level since May 2025. Pressure on the euro is intensifying due to rising energy prices, France’s budget deficit, and new political risks in the region.

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