The dollar gatherings amid a safe rush after Israel hit Iran

The US dollar finally gathered on Friday-after trading the lowest level of its duration on the previous day-where investors moved to safe armed assets after a series of Israeli air strikes on Iran.

The size of the attack, which represents a major escalation of the conflict in the region, has taken the market by surprise, which prompted the price of the dollar and other assets that are believed to provide protection in times of increased fluctuations.

the The dollar indexWhich measures Greenback against a basket of their main peers, the last time was seen 0.6 % on Friday morning, circulating about 98.48.

Israeli Prime Minister Benjamin Netanyahu said that his country launched a “targeted military operation” against the Iranian nuclear and ballistic missile program. Iran said it had launched about 100 drones targeting Israel in response to revenge.

“This process will continue for several days that it takes to remove this threat,” said Netanyahu.

US Secretary of State Marco Rubio said that the attack on Israel was “unilaterally” and was issued without our support. “We are not involved in strikes against Iran and our maximum priority is the protection of American forces in the region,” Rubio said in a statement.

The role of the dollar was confirmed as a safe trade by its rise against each of Swiss franc and Japanese yen -Both are considered safe origins-by 0.23 % and 0.28 %, respectively. Investors flee to safe assets at times of uncertainty to protect their money from fluctuations and find stability when the assets of risk stumble.

The strategists of the currency said that the news of the strikes had offered “the sale and the dollar, the value of the value to a recovery.”

However, they noticed that in normal circumstances, they expected the dollar recovery to be larger than the back of the “negative shock” in stocks and bonds.

They added in a note: “But the traditional links of the US dollar have recently disappeared, and it is likely to decrease by 1.5 % in the future of the S&P 500 for the gains of the maximum.”

In the future, strategic experts said that the depth and length of the conflict in the Middle East – And its impact on oil prices – The investors were not watching it.

They wrote: “The risks now indicate more specifically to a long period of tension, unlike the last episodes. We believe this may continue to remove some pressure on the dollar.”

Before the strikes, it looked like that Nothing can be divided into the dollar chipWhich was exacerbated by the uncertainty in the policy raised by the Trump administration. The interest discount expectations soon from the federal reserve were a major driver of the dollar, as the price cuts drive the currency lower.

On Thursday, the dollar index reached its lowest level since late March 2022.

It comes against the backdrop of the wide shortcut of the US dollar – where investors are betting that the currency is set further. A survey conducted by Bank of America, which was published on Friday, showed that although short pants in dollars are the most crowded trade, “condemnation in the United States is short is still largely intact.”

Gold-one of the other safe classic assets-has reached the highest level of strike news for about two months, although some gains are reduced with morning progress. Instant prices Among the metal increased by 1.22 % to $ 3426 at 11:07 am London time. Golden futures For August delivery was 1.2 % higher at $ 3,442.8.

“The news has led to great concerns about a broader regional escalation and conflict,” said Deutsche Bank strategists about the Israeli strike in an early memorandum on Friday. “The effects of the attack have been corrupted across the global markets, with a strong step in the risk of many asset categories.”

Some of the early market reaction has decreased somewhat by mid -chest in London, noting that the economists in Rabobank indicated that it was “completely restricted.”

The prices of the US Treasury increased early in the morning, which prompted returns to a decrease. Return 30 years oldand 10 years and Two years Treasury notes were mostly flat by 11:07 am London time.

European stocks They were trading lessAnd at the same time, with American stock futures decreased.

The most dramatic market reaction was seen in oil, as investors were concerned about revenge against Iran and disrupting potential oil supplies. Raw future contracts Up to 13 % After the air raid, but I got out of these heights with the advancement of the morning.