The Kabul Tribune (KT) — The U.S. dollar climbed to a 13-month high on Wednesday as investors sought safe-haven assets amid a global stock selloff and growing expectations of further interest rate hikes by the Federal Reserve, Reuters reported.
The dollar index, which measures the greenback against major currencies including the euro and yen, rose to 101.51, its strongest level since May 2025.
Market volatility intensified following a broad decline in technology and semiconductor stocks, driving global equities lower and boosting demand for the dollar and government bonds.
“The U.S. dollar is still the preferred safe haven,” said Ray Attrill, head of FX strategy at National Australia Bank.
The euro traded near a one-year low at $1.1363, while the British pound weakened slightly to $1.3194 after remarks from Bank of England policymaker Alan Taylor supporting a prolonged pause in interest rate changes.
The Japanese yen remained under pressure, trading at 161.55 per dollar and hovering near its weakest levels in decades. Analysts warned the yen could weaken further if U.S. interest rates rise again this year.
Geopolitical tensions also supported demand for safe-haven assets, as differences between the United States and Iran over key aspects of their framework agreement raised concerns about the durability of a fragile ceasefire.
The developments underscore ongoing uncertainty in global financial markets, where interest rate expectations, geopolitical risks and equity market performance continue to shape currency movements.
