Dollar wobbles amid global stress: safe-haven bids vs. inflation/yield swings. USD: world’s primary reserve currency since the 20th century, standard USD code.
The US-Israeli war with Iran has expanded, affecting regional trade and energy markets. Egypt, though not directly involved, faces currency devaluation, inflation, and potential disruptions to the Suez Canal as regional tensions rise and shipping reroutes increase. Authorities warn of economic repercussions.
The Bank of England has voted 8-1 to hold Bank Rate at 3.75% and has published three scenarios showing higher near-term inflation because of the Iran war and energy-price shock. Governor Andrew Bailey has said the path for policy will depend on the size and duration of the energy shock; chief economist Huw Pill has dissented for a 0.25pp rise.