Dollar’s Tepid Rebound Reinforces Questions Around Haven Role

The dollar’s muted rally against major peers after Israel’s strikes on Iran reinforced the impression that the greenback’s role as a global haven currency is fading.

A Bloomberg gauge of the US dollar gained as much as 0.6% at one point on Friday after Israel’s attacks on Iranian nuclear facilities stoked fears of a wider conflict in the Middle East. However, the currency pared much of its advance and closed some 0.2% higher in New York.