DXY Index Reaches Yearly High Amid Middle East Conflict

The DXY index reached a yearly high of 99.84 on Monday, marking a 1.92% increase since the onset of the conflict between Iran and Israel. According to NS3.AI, this rise reflects investors' shift away from risk assets. The withdrawal of billions of dollars by foreign and institutional investors from Asian stock markets has led to significant losses in major regional indices. Concurrently, gold prices fell by 6% and silver dropped by over 5%. Additionally, the euro, yen, British pound, and Chinese yuan weakened against the dollar. Strategists suggest that a prolonged conflict may continue to exert pressure on currencies vulnerable to negative supply shocks.