Business · Markets · 3 hrs ago
Dollar rises as Middle East conflict and Ukraine war unsettle markets
The US dollar rose on Monday and stayed near its highest level in 18 months.
Investors sought safer assets as conflict continued in the Middle East and uncertainty grew over a ceasefire announcement involving Russia and Ukraine.
Ukraine’s president said Russia struck a power plant in Kharkiv after the announcement.
Iran-backed Houthis also launched attacks on an airport in Riyadh, Saudi Arabia.
Rising oil prices and caution ahead of US inflation figures due Wednesday added to market concerns.
Strong US growth and inflation above the Federal Reserve’s target have supported expectations that it may raise interest rates further.
The inflation figures could affect the dollar’s direction in the short term.
The dollar rose on Monday as conflict in the Middle East and uncertainty over a proposed Russia-Ukraine energy ceasefire unsettled markets.
The dollar index, which measures the currency against six major currencies, gained 0.37% to 102.589.
The dollar remained near an 18-month high as investors sought safe-haven assets.
Investors were also cautious ahead of US inflation data due later that week.
- Who
- The US dollar and currency-market investors.
- What
- The dollar rose as geopolitical tensions and uncertainty supported demand for safe-haven assets.
- When
- Monday, October 12, 2026.
- Where
- Global currency markets; the article reports exchange rates in Brazilian time.
- Why
- The Middle East conflict and doubts about a proposed Russia-Ukraine energy ceasefire unsettled markets. Investors were also watching for US inflation data.
This story does not have two clearly opposing sides.
Ukrainian President Volodymyr Zelensky said Russia had hit a power plant in Kharkiv.
The dollar rose as oil prices increased and investors weighed geopolitical tensions.
- Dollar index
- Up 0.37% to 102.589 points
- Dollar against yen
- 158.657 yen at about 16:50 Brasília time
- Euro
- Down to US$1.1158
- Pound
- Down to US$1.3209
- US inflation report
- September consumer inflation data was due Wednesday, October 14
What people are saying
Unless there is a significant drop in energy prices this week, which seems unlikely, the release of US consumer inflation data for September on Wednesday should keep expectations of Fed tightening largely intact
Sources
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