Bloomberg dollar spot index at high on report of US troop moves

The Bloomberg Dollar Spot Index reached its highest level in nearly two months on March 12, 2026, as reports of U.S. military preparations to secure shipping lanes in the Strait of Hormuz intensified expectations of prolonged geopolitical instability. The index, which measures the dollar’s performance against a basket of 10 currencies, closed near its peak since early January, reflecting heightened demand for safe-haven assets amid escalating tensions between the U.S. and Iran according to Bloomberg. Energy Secretary Chris Wright confirmed that the U.S. Navy could begin escorting tankers through the critical oil corridor by month’s end, a move aimed at mitigating risks to global energy supplies but likely to prolong market volatility as reported.

Oil prices remained elevated, with Brent crude trading near $100 a barrel, as conflicting statements from U.S. President Donald Trump and Iran’s leadership underscored the fragility of the situation. Goldman Sachs warned that sustained disruptions via the Strait of Hormuz could push oil prices beyond the 2008 record high of $147.50, exacerbating inflationary pressures and further dampening risk appetite according to Bloomberg. The International Energy Agency noted that the conflict has already disrupted 7.5% of global oil supply, contributing to a 5% decline in global equities from their February peak as data shows.

The dollar’s strength contrasted with weaker equity markets, as Asian stocks fell 0.6% in tandem with U.S. benchmarks. Treasury yields rose across the curve, with the two-year yield climbing to 3.74% as investors priced in reduced prospects for Federal Reserve rate cuts. Traders now expect only 20 basis points of easing by year-end, down from 61 basis points before the conflict escalated according to Bloomberg. While the dollar’s rally paused slightly on Friday, its resilience highlighted its role as a refuge in times of uncertainty, even as gold and other traditional safe havens saw mixed performance as reported.