Dollar rides haven demand as Middle East talks ring hollow
The dollar pushed higher toward multi-month peaks on Friday as investors sought safety in the shadow of an intensifying Middle East war and mounting doubts over any path to de-escalation. Markets were on edge following another rollercoaster week as US President Donald Trump again extended a pause on strikes against Iran’s energy facilities into April even as Washington and Tehran offered starkly conflicting accounts of diplomatic progress. The Pentagon is also looking at sending up to 10,000 additional ground troops to the Middle East, the Wall Street Journal reported on Thursday, doing little to bolster investor hopes of an imminent end to the war. That kept the dollar bid as investors flocked to the safe-haven currency and ramped up expectations of a U.S. rate hike by the year-end, owing to the inflationary pulse from higher-for-longer energy prices.