Dollar Advances on Reports the US to Deploy Troops to the Middle East

The dollar index rose 0.42% on Tuesday as safe-haven demand increased amid the ongoing war with Iran. Crude oil jumped ~4% the same day, raising near-term inflation risks and increasing the likelihood the Fed may tighten policy, which could pressure risk assets and influence rates/yields.

Analysis

The dollar index rose 0.42% on Tuesday as safe-haven demand increased amid the ongoing war with Iran. Crude oil jumped ~4% the same day, raising near-term inflation risks and increasing the likelihood the Fed may tighten policy, which could pressure risk assets and influence rates/yields.