Dollar Index Rises Above 99.50 on Middle East Tensions

The US Dollar Index advanced above the 99.50 mark on Tuesday, trading near 99.70 in the Asian session. The move followed a modest decline the previous day, as geopolitical jitters in the Middle East prompted a flight to safety.

Demand for the dollar strengthened against a basket of six major currencies, with the index recovering from its recent pullback. The heightened regional risks overshadowed other factors, lifting the greenback even as broader risk sentiment remained fragile.

Traders are monitoring further developments in the Middle East, as any escalation could sustain dollar demand in the near term.