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Barchart
Barchart
Rich Asplund

Dollar Climbs on Safe-Haven Demand from Middle East Tensions

The dollar index (DXY00) Tuesday rose by +0.40% and posted a 1-1/2 week high. Escalating Middle East tensions boosted safe-haven demand for the dollar Tuesday after Iran launched a missile attack against Israel.  The dollar also has carryover support from Monday when Fed Chair Powell said the FOMC is in no hurry to cut interest rates.  In addition, weakness in the euro boosted the dollar after EUR/USD slid to a 2-1/2 week low Tuesday after Eurozone consumer prices rose at the slowest pace in 3-1/2 years.  Tuesday’s US economic news was mixed for the dollar.

The US Aug JOLTS job openings rose +329,000 to 8.04 million, showing a stronger labor market than expectations of 7.693 million.

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