The dollar is poised to end the year with an overall gain, benefiting from its status as a safe-haven currency. Heightened global economic uncertainty and ongoing geopolitical tensions have driven investors towards the perceived safety of the U.S. dollar.

Throughout the year, various factors have contributed to the dollar’s strength:

• Global Economic Slowdown: Concerns about a potential recession in major economies have increased demand for the dollar.
• Geopolitical Risks: International conflicts and political instability have further bolstered the dollar’s appeal.
• Interest Rate Differentials: The Federal Reserve’s monetary policy, relative to other central banks, has also played a role.

Analysts note that while the dollar’s strength may moderate in the coming year, its safe-haven characteristics will likely continue to provide support in times of market volatility.