Geopolitical Risks Underpin the Dollar
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 26 2024
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Source: NASDAQ.COM
Dollar Index Recovery: The dollar index rose by +0.13% after hitting a 13-month low, driven by safe-haven demand amid escalating geopolitical tensions in the Middle East, although gains were limited by unexpected declines in US capital goods orders and dovish comments from Federal Reserve officials regarding interest rate adjustments.
Impact on Euro and Yen: The euro fell by -0.28% due to a stronger dollar and declining German business confidence, while the yen initially gained from safe-haven demand but later weakened as T-note yields increased; precious metals like gold and silver saw moderate gains supported by safe-haven buying amidst the geopolitical unrest.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
