The Dollar Strengthens Its Position in Global Markets

The US dollar has strengthened amid rising geopolitical tensions in the Middle East, concerns over energy supplies and expectations that the Federal Reserve (Fed) may raise interest rates. The dollar index, which measures the US dollar against the euro, Swiss franc, Japanese yen, Canadian dollar, British pound and Swedish krona, rose to 102.6, reaching its highest level since April 2025. At 11:40, the index stood at 102.3.

Escalating tensions in the Middle East, particularly attacks by Iran-backed Houthi rebels on Saudi Arabia and the targeting of oil tankers, have increased concerns over energy supplies. Rising oil prices are also intensifying inflation concerns. Brent crude futures for December reaching $105 per barrel have further highlighted these risks.

Against this backdrop, markets are considering the possibility of Fed rate hikes. Beth Hammack, president of the Federal Reserve Bank of Cleveland, stressed the importance of maintaining a restrictive monetary policy to bring inflation back to 2%. Christopher Waller, a member of the Federal Reserve Board of Governors, also indicated that a rate hike in December was possible.

Meanwhile, France’s financial problems are putting pressure on the euro. In addition, US 10-year Treasury yields remaining above 5% are making the dollar more attractive to investors.