The dollar’s global reign: The Iran war has strengthened the greenback but the story is far from over

Given the competing narratives on the war’s trajectory, it is difficult to fathom how the scales will eventually tilt. One may guess that America’s ‘Ashvamedha run’ has not gone by plan; The Economist’s latest cover story is titled ‘Advantage Iran’. However, if one undertakes a dispassionate analysis of the direction of currency and bullion markets, a different story emerges. The strengthening dollar not only reaffirms its status as a safe-haven currency during turmoil, but suggests its privileges as a reserve currency are not weakening. Both of these would not have been possible if America’s military and strategic dominance had materially…