Dollar Gains Conditional Safe-Haven Status Amid Global Tensions

TD Securities strategists have reported that the U.S. dollar is currently exhibiting characteristics of a 'conditional safe-haven asset.' According to Jin10, the strategists noted that while the dollar is no longer a natural refuge, the nature of current global shocks has reinstated its safe-haven attributes. The United States remains a relatively closed economy with energy autonomy and geographical isolation, factors that have driven safe-haven flows towards the dollar amid the Iran conflict. However, prior to the outbreak of the conflict, investors held significant bearish positions against the dollar, and the correction of these positions has also supported the currency. Despite this, if the dollar were still an unrivaled safe-haven asset, its gains would have been more pronounced.