Forex News: U.S. Dollar Rises On Escalating Geopolitical Tensions

U.S. Dollar Rises On Escalating Geopolitical Tensions

(RTTNews) - The U.S. dollar strengthened against other major currencies in the European session on Monday, as investors closely monitored escalating West Asian tensions.

The conflict in the region escalated further today after Israel launched airstrikes on Hezbollah targets in Beirut and other parts of Lebanon following projectile fire from Lebanese territory into northern Israel.

U.S. President Donald Trump suggested the conflict with Iran could go on for the next four weeks, raising concerns about a significant widening of hostilities in the region.

All eyes are on the status of the Strait of Hormuz, which is crucial for the flow of oil to the rest of the world.

Elsewhere, tensions between Afghanistan and Pakistan have sharply escalated after Afghan Air Force attacked key Pakistani military installations, including the Nur Khan Airbase in Rawalpindi in response to the recent aerial incursions by the Pakistani military.

In economic news, the U.S. Labor Department's monthly jobs report along with other reports on retail sales, manufacturing and service sector activity will be in the spotlight this week amid considerable uncertainties over U.S. tariffs and Fed policy.

In the European trading today, the U.S. dollar rose to nearly a 1-1/2-month high of 1.1698 against the euro, nearly a 2-1/2-month high of 1.3314 against the pound and a 3-week high of 157.25 against the yen, from yesterday's closing quotes of 1.1796, 1.3456 and 156.16, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.16 against the euro, 1.31 against the pound and 159.00 against the yen.

Against the Swiss franc, the greenback edged up to 0.7743 from an early low of 0.7679. The next possible upside target for the greenback is seen around the 0.78 region.

Against the Australian dollar, the greenback climbed to 1.7045 from an early low of 0.7117. The greenback had traded earlier to a 6-day high of 0.7036 against the aussie. The greenback may test support near the 0.69 region.

Against the New Zealand and the Canadian dollars, the greenback advanced to more than a 1-month high of 0.5928 and 4-day high of 1.3687 from early lows of 0.5997 and 1.3641, respectively. On the upside, 0.57 against the kiwi and 1.38 against the loonie are seen as the next resistance levels for the greenback.

Looking ahead, Canada and U.S. manufacturing PMI data for February are due to be released in the New York session.

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