Dollar Nears 18-Month Peak Amid Escalating Global Tensions

Dollar nears 18-month high as Middle East conflicts and inflation data drive safe-haven demand. Key currencies react to rising geopolitical risks.

Editorial Desk

October 13, 2026 One Min Read

POLICY WIRE — New York, United States — The U.S. dollar remains near an 18-month high, driven by heightened global tensions and investor caution ahead of critical economic data. Market conditions reflect growing concerns over regional conflicts and their impact on financial stability.

The dollar index, which measures the currency against six major counterparts, stood at 102.56, marking its highest level since April 2025. This strength is attributed to increased safe-haven demand as renewed attacks on energy infrastructure in the Middle East and Ukraine continue to fuel uncertainty across global markets.

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Cryptocurrencies like Bitcoin and ether faced declines amid the shifting economic landscape, while the euro and British pound showed some resilience despite volatile conditions. Analysts note that upcoming U.S. inflation figures will play a key role in shaping the dollar’s trajectory in the coming days.

Reporting by Policy-Wire (PW)

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