The US dollar is poised for its largest single-day gain in a month

According to foreign media reports, after Israel launched an attack on Iran and triggered Iranian retaliation, investors returned to buying the US dollar, putting the dollar on track for its largest single-day gain in a month on Friday. Initially, safe-haven currencies such as the Swiss franc and the Japanese yen rose on the news, but the dollar later regained lost ground. The US dollar has long been the ultimate safe haven during periods of geopolitical or financial turmoil. The dollar rose nearly 0.9% against a basket of major currencies, with the euro, pound, and Australian dollar seeing particularly notable declines. The US Dollar Index climbed 0.85%, poised for its biggest single-day gain since May 12. City Index strategist Fiona Cincotta noted that the dollar is returning to its traditional safe-haven role; however, if tensions ease over the weekend, this boost may not last long.