The dollar index, which measures the value of the US dollar against six major world currencies, rose 1.6 percent this week to 100.49 points. The dollar strengthened 1.7 percent against the European currency, sending the euro down to $1.1415, Hrportfolio reports.
The American currency also strengthened against the Japanese one, by 1.2 percent, so the price of the dollar reached 159.7 JPY.
The dollar's strengthening for the second week in a row is a result of the crisis in the Middle East, as investors seek safer havens for capital. Investors are not inclined to riskier investments, as oil prices have jumped more than 35 percent in the past two weeks, since the US and Israeli attacks on Iran began.
Although US President Donald Trump has been saying for days that the US and Israel have won, the crisis in the Middle East is not abating. Iran continues to rocket Israel and neighboring countries and is not allowing tankers to pass through the Strait of Hormuz, which has shaken the oil market.
A strong and prolonged rise in oil prices could have a very negative impact on the economies of the Eurozone and Japan, which are largely dependent on oil imports, while the American economy could fare somewhat better because it exports this energy source.
