His reputation dollar as a refuge in periods crisis It is under test after the limited recovery of the US currency in response to the Israeli attack on Iran, which triggered fears of a wider conflict in the Middle East.
As Bloomberg reports, a divergence from historical standards in times of crisis, the dollar initially fell after Israel’s attacks on Iran’s nuclear program. The American currency then made a mild recovery, but Bloomberg’s index for its value remains close to the lowest level of the last three years. The US position as a largest oil producer in the world probably contributed to a mild recovery on a day when future oil fulfillment contracts rose up to 13%.
The dollar has been under pressure in recent months, as President Donald Trump has launched the trade war and the prospects for the US economy worsened. The popular trend of “sell America”, which has affected a number of US assets, from shares to government bonds, has significantly affected the currency.
“The dollar should be negotiated at much higher levels based on night events, but the tendency is clearly to always see the glass half -empty,” said Francesco Pesle, a currency strategic analyst on ING.
“It is another proof of the loss of the value of the dollar as a safe shelter,” he added.