According to ChainCatcher, Deutsche Bank analyst Thu Lan Nguyen noted in her report that the recent appreciation of the US dollar due to the Israel-Iran conflict may primarily stem from the oil price rebound, rather than its role as a safe-haven currency. The US dollar benefits from rising oil prices, as this improves the ratio of export to import prices, or the United States' terms of trade. Thanks to technological breakthroughs in the shale oil revolution, the United States has now become one of the world's largest oil producers.
It is worth noting that the US dollar did not show a comprehensive strengthening trend last Friday, but instead declined against the Canadian dollar and Norwegian krone, which are more dependent on oil economies. Analysts emphasized that this phenomenon precisely explains why the US dollar index simultaneously pulled back as oil prices gave back part of their gains from last Friday.
