US Dollar Maintains Dominance Amid Geopolitical Uncertainty and Energy Supply Risks

The greenback firms on Tuesday after Iran denies President Trump's claims of "productive" talks, leaving investors cautious as Middle East hostilities continue.

By: AXL Media

Published: Mar 24, 2026, 6:43 AM EDT

Source: Reuters

Currency Market Volatility and Safe-Haven Demand

Following a brief dip on Monday, the US dollar index (DXY) rose 0.2% to 99.387. The currency is currently on track for its strongest monthly gain since October, bolstered by a "risk-off" sentiment among global traders. Major peers saw corresponding pullbacks:

Euro (EUR): Fell 0.3% to $1.1583.

British Pound (GBP): Eased 0.49% to $1.3388.

Australian Dollar (AUD): Dropped 0.6% to $0.6968, retracing from recent six-week highs.

Strategists note that while the postponement of strikes provided a temporary "breather" for volatility, the lack of a visible path toward de-escalation keeps the greenback supported.