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FOREX-Dollar gains, buoyed by safe-haven demand amid rising geopolitical tensions
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FOREX-Dollar gains, buoyed by safe-haven demand amid rising geopolitical tensions
Jun 13, 2025 8:10 AM

(Recasts with US trading, updates prices, adds analyst comment,

changes dateline from LONDON )

*

Dollar agains against euro and yen

*

Euro breaks four-day rally

*

Gold, oil gain on Middle East tensions

By Chibuike Oguh

NEW YORK, June 13 (Reuters) - The U.S. dollar gained

against major currencies, including the euro and yen, on Friday

as markets sought safe-haven assets amid rising geopolitical

tensions following the outbreak of an Israeli-Iranian conflict.

Israel launched a barrage of strikes across Iran on Friday,

attacking nuclear facilities and missile factories and killing a

swath of military commanders. Iran responded with an armada of

drones against Israeli targets.

U.S. President Donald Trump, Israel's main ally, urged Iran to

reach a deal on its nuclear program, suggesting that Tehran had

brought the attack on itself by resisting a U.S. ultimatum in

talks to restrict its uranium enrichment.

The dollar gained 0.62% to 144.36 against the Japanese yen

and rose 0.39% to 0.813 against the Swiss franc

, with the greenback on track to snap two straight

sessions of losses against safe-haven currencies.

The dollar, however, is still poised for a weekly loss

against both the yen and the franc, with markets worried about

Trump's tariffs.

Juan Perez, director of trading at Monex USA in Washington,

said the U.S. dollar tends to gain in times of physical

uncertainty and chaos including the Israel-Iran conflict,

although tariffs remain the main concern among investors.

"This (Israel-Iran conflict) just landed on us but the main

concern remains tariffs and obstacles to global trade," Perez

said. "When you actually have a physical situation and potential

for armed conflict to be prolonged and to escalate, the U.S.

dollar and gold jump into safe-haven assets. It's a bit of a

psychological reaction."

The euro was down 0.67% at $1.1505, on track to snap four

straight sessions of gains. It is on track, however, for the

second consecutive weekly gain against the dollar.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.82% to 98.48, snapping two straight sessions of losses.

It is still set for a second consecutive week of losses.

Gold prices jumped amid safe-haven demand. Spot gold

rose 1.68% to $3,441.04 an ounce. Oil prices jumped 7% to

multi-month highs, buoyed by the Israeli-Iran conflict. Brent

rose 7% to $74.23 per barrel.

"It's difficult to fix every single item that we are facing

this year that has crushed the market's ability to believe in

the U.S. dollar," Perez added. "But at the same time, when it

comes to the military and physical aggression or armed conflict,

it seems like globally there's still a consensus that you should

jump towards historically the safest assets, which is the U.S.

dollar as a currency and gold as a commodity to hold on to."

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