Amid the intensifying Iran-US war, the US dollar has been working its way up the radar. The DXY index has hit a new peak amid the evolving war dynamics, hitting a new value of 99 after stagnating for more than 7 months. This new spike has led the experts to believe that the dollar must be trying hard to regain its lost value, as the pivot towards the safe haven assets continues to diversify in present times.

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DXY Index Hits a New Peak

The US dollar has finally come out of its slumber, rallying quite actively on Tuesday. The DXY index is now up 0.8%, sitting at 99, winning against major currency competitors. Per a recent report by Investing, the US dollar has risen primarily due to its safe haven status, as investors’ demand for USD continues to weigh in as compared to other assets. Among other notable developments, experts have shared how this is the best time to make the most of the US dollar, as investors should try their best to take advantage of this “energy shock.”

Moreover, the dollar is also banking on the opportunity that the Fed may keep the rates higher to fight inflation, giving USD a much-needed value push.

“The dollar was stronger across the board yesterday as investors reacted to the surge in energy prices. For FX markets, this continues to look like a tale of the haves and the have-nots when it comes to energy independence. The dollar looks like the best currency to take advantage of this energy shock. DXY looks likely to stay bid in the near term. 99.50/100.00 looks like the target whilst energy prices remain bid,” said analysts at ING, in a note.

Gold and Silver Plunge Amid Rising War Developments

At the same time, other safe haven alternatives such as gold and silver have plunged rapidly, falling to sit at $5250 and $80 at press time. This downturn has been triggered by a striking rise of the USD, making gold and silver appear expensive in other currencies.

Another primary reason for gold and silver to fall is the investors’ mindset. Many traders must have booked profits, as gold and silver have outperformed by delivering stunning rallies. This may have also triggered temporary sell-offs and pullbacks, resulting in both the assets tumbling down further.

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