US Dollar Nears 10-Month High Amid Shifting Geopolitical Tensions in West Asia

Washington D.C. The value of the US dollar in the currency market has climbed near its highest point in 10 months. The dollar's value rose on Monday following faint hopes of potential talks between Iran and the US to end the ongoing conflict in West Asia. US President Donald Trump had expressed that the new Iranian regime was 'more rational' at a time when additional US troops arrived in West Asia.

On Monday, the US dollar approached 160 yen against the Japanese yen. This is the highest level since the central bank intervened in the local currency market in July 2024. The Euro appeared to gain some support on Monday due to the interest rate hike by the European Central Bank (ECB). The stock market has been nervous this month as shipping through the Strait of Hormuz has almost halted due to the war in Iran. Brent crude is on track for a record monthly increase.

Since the start of the Iran conflict, the dollar has been benefiting from its status as a safe-haven asset since early March. High oil prices are affecting Japan and the Eurozone. However, the US has been spared this damage as it is not a net oil importer.

On Monday, the dollar index, which measures the value of the US dollar against major currencies in the currency basket, stood at 100.19 points. In mid-March, it had risen to its highest point since May 2025. This month, the dollar is on track for its largest monthly increase since last July. The British multinational bank Barclays stated that sentiment in the dollar is 'max bullish.'

The Euro's value is around $1.15. This indicates that the Euro's value is on track for a 2.5 percent decrease against the dollar in March. Thu Lan Nguyen, Head of Forex and Commodity Research at Commerzbank, says that the overall strengthening of the dollar due to rising oil prices in recent days has led to a sharp decline in the EUR/USD exchange rate. She added that the possibility of a decrease in the EUR/USD exchange rate remains limited as long as this scenario persists.

On Monday, the dollar strengthened by 0.4 percent against the Japanese yen, reaching 159.65 yen. In Asian markets, this rate had reached 160.47. This rate is the weakest since July 2024. Concerns over rising oil prices caused the yen to fall by 2 percent against the dollar in March.