The old reliable rule is working again: when nuclear chaos starts somewhere, the US dollar suddenly becomes the most attractive asset on the planet. Of course, nothing says 'reliability' like a politically shaky Washington and printed trillions. But, as it turns out, when the Middle East starts to blaze, the American dollar puts on its superhero cape and saves portfolios around the world.
Here’s a scenario straight out of the financial version of a Hollywood action movie: Israel strikes nuclear facilities in Iran — the markets jump like they’re on a taser, and what does the dollar do? Right! It puts on sunglasses, glances over its shoulder, and says, 'Looks like I'm back in business.'
Analysts from Monex Europe seem to say: 'Yes, we thought the American political system was too unstable for global trust... but have you seen what's happening in the world?!' Compared to the prospect of nuclear conflict somewhere between Tehran and Tel Aviv, inflation in the US is just a minor misunderstanding.
So now, with oil skyrocketing like a SpaceX rocket, gold shining like the teeth of a Hollywood producer, and the Swiss franc twitching from stress, the dollar sits quietly, sipping coffee at the Fed, and enjoying the moment. It's 'safe haven' again. No joke. Even despite the fact that in the US everything is still built on a foundation of debt, elections, TikTok, and debates about who the president is today.
Of course, all this reminds us of an old truth: if you want the dollar to rise — don't raise rates, don't build factories, just wait for a new geopolitical stir-up. Because in this world, there is only one safe place for money — a country with the most aircraft carriers.
So, gentlemen investors, it's time to put on the caps that say 'In Fed We Trust' again. The dollar is alive, the dollar is strong, and apparently, it thrives on international chaos.
