Item 1 of 2 U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
NEW YORK, Aug 26 (Reuters) – The U.S. dollar rallied from an eight-month low on Monday, while the yen rose against most currencies, as geopolitical tension in the Middle East intensified, prompting investors to seek safe-haven shelter.
Volume was lighter than usual, with UK markets closed for a public holiday.
“Geopolitical tension, absolutely, is a factor. Israel and Lebanon moved the market for sure,” said Amo Sahota, executive director at Klarity FX in San Francisco. “Oil prices rallied pretty significantly about 3%. They were down last Friday, so that recovery has benefited some currencies such as the yen, Swiss franc, and the Canadian dollar.”
In afternoon trading, the U.S. dollar index, a gauge of the dollar’s value against six major currencies, advanced 0.2% to 100.84, rising from its lowest since late December of 100.53 .
Against the yen, the dollar…
