Short dollar bets make cautious return after safe-haven rush

- By Cole Lipsky and Joe Parsons
- 12 Mar 2026

Recent US dollar strengthening in response to the escalating conflict in Iran has done little to temper many investors’ long-term bearish views on the greenback, with some buying into trades anticipating a rally in higher-yielding currencies.

The US dollar index (DXY), a measure of the dollar’s value against a basket of currencies, hit 99.683 on March 9, its highest level since November, and almost 4 points higher than the late-January lows.

During the first few days of the conflict, flow data

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