The dollar found support Thursday as investors sought its safe-haven appeal amidst growing concerns about the global economic outlook. Heightened anxieties regarding international markets prompted a flight to safety, benefiting the U.S. currency.

Uncertainty in equity markets and fears of a potential recession in major economies contributed to the dollar’s strength. As risk aversion increased, the demand for the dollar as a store of value also rose.

Analysts noted that while the long-term outlook for the dollar remains uncertain, the current environment favors the currency due to its perceived stability during times of economic turmoil.

Key factors supporting the dollar included:

• Increased risk aversion in global markets
• Concerns about economic slowdown in major economies
• Demand for safe-haven assets

However, some analysts cautioned that the dollar’s strength may be temporary, as underlying economic challenges in the U.S. could eventually weigh on the currency.

The dollar found support as investors sought safe-haven assets. Heightened risk aversion, triggered by worries about global economic growth and geopolitical instability, underpinned demand for the U.S. currency.

Analysts noted that the dollar’s strength reflected broader market anxieties. Ongoing concerns about inflation and potential recessionary pressures in major economies have led investors to reduce their exposure to riskier assets.

Currency strategists indicated that the dollar could remain elevated as long as uncertainty persists. However, they cautioned that any signs of easing global tensions or improving economic data could diminish the dollar’s appeal as a safe haven.