The US dollar just had its best trading day in two weeks, and the catalyst was exactly the kind of news markets were hoping they wouldn’t hear again: fresh disruptions in the Strait of Hormuz.
The Bloomberg Dollar Spot Index climbed 0.2% on August 6, its largest single-day gain since July 23. The move came as reports surfaced that Iran was attempting to restrict US and Israeli vessels from passing through the strait, one of the most critical chokepoints for global oil supply.
Oil fears reignite the safe-haven trade
Oil prices advanced on the restriction reports. US 10-year Treasury yields rose alongside the dollar, reflecting what analysts described as a growing inflation-risk premium tied to elevated energy costs.
The greenback’s strength was particularly visible against the Japanese yen, where the dollar gained 0.5% and pushed past its 200-day moving average to reach approximately 158.55.
