Dollar Remains Resilient as Oil Shock Boosts Safe-Haven Flows

The U.S. dollar remains firm near its strongest level in more than nine months as geopolitical tensions in the Middle East continue to drive safe-haven demand and support elevated oil prices. The U.S. Dollar Index (USDX) was broadly steady at 100.342 after reaching 100.54 on Friday, while Brent crude held above $105 per barrel, reinforcing a defensive tone across global markets.

The article explains that the latest move in the dollar is being shaped by both energy market disruption and broader geopolitical uncertainty. Supply concerns intensified after military actions involving major regional energy infrastructure, while disruptions around the Strait of Hormuz added further pressure to global oil routes. In this environment, investors have continued to rotate into the dollar, which is typically favoured during periods of financial stress due to its liquidity and reserve currency status.

From a technical perspective, the USDX is trading near 100.10, having recovered sharply from the earlier yearly low of 95.34. Momentum remains constructive, with the index trading above all major short-term moving averages, including the 5-day at 99.43, the 10-day at 99.14, the 20-day at 98.41, and the 30-day at 97.97.

Read more about how rising oil prices, safe-haven flows, and key USDX levels are shaping the outlook for the U.S. dollar.