US Dollar Index (DXY) Rises Amid Middle East Conflict Concerns

The US Dollar Index (DXY), measuring the dollar’s value against six major currencies (EUR, JPY, GBP, CAD, SEK, CHF), increased by 0.4% on Wednesday, March 12, 2026, to 99.22. This appreciation comes as investors express caution regarding escalating tensions in the Middle East.

Middle East Conflict Drives Safe-Haven Demand

Concerns over the conflict in the Middle East have intensified following recent Iranian attacks on oil tankers and energy storage facilities, leading to a surge in global energy prices. Since the complete of February, the US dollar has appreciated by approximately 2% against the euro, fueled by a flight to safe-haven assets. Even as brief hopes for a resolution to the conflict temporarily slowed this upward momentum earlier in the week, those hopes are diminishing as Iran continues its attacks.

Iran’s military has warned that oil prices could reach $200 a barrel, following attacks on ships in the Persian Gulf region. Oil prices rose more than 4% in the same session due to fears of supply disruptions. Analysts note that the International Energy Agency’s (IEA) proposed release of 400 million barrels of oil reserves is insufficient to alleviate market concerns.

Expert Analysis

Kyle Chapman, a foreign exchange market analyst at Ballinger Group in London, stated, “The conflict in Iran and its impact on energy prices remains the focus of the foreign exchange market.” He added that prospects for a swift end to the conflict are fading as Iran continues attacks and attempts to lay mines in the Strait of Hormuz.

The US Central Command (CENTCOM) reported neutralizing 16 Iranian mine-laying ships near the Strait of Hormuz. US President Donald Trump has also called for the immediate removal of any mines deployed by Iran in the area.

Currency Pair Movements

Against the Japanese yen, the US dollar rose 0.5% to 158.90 yen. The Australian dollar increased 0.4% to $0.7149, supported by expectations of a potential interest rate hike by the Reserve Bank of Australia (RBA) at its next meeting. The British pound remained relatively stable at $1.3414.

Inflation and Federal Reserve Policy

Recent US consumer price data showed moderate inflation in February, with rising rents and increased costs for gasoline and groceries. However, the recent surge in energy prices has shifted market focus towards the risk of higher inflation in the coming months. Investors believe that a significant rise in inflation could complicate the Federal Reserve’s plans to lower interest rates.

Vietnamese Dong Exchange Rates (March 12, 2026)

In Vietnam, the State Bank of Vietnam announced a central exchange rate of 25,059 VND to the US dollar. Exchange rates at the State Bank of Vietnam exchange office are 23,857 VND for buying and 26,261 VND for selling.

Commercial Bank Exchange Rates

EUR exchange rates at the State Bank of Vietnam are 27,657 VND (buying) and 30,568 VND (selling). Japanese yen rates are 150-166 VND per yen.

Commercial Bank EUR Exchange Rates

Commercial Bank JPY Exchange Rates

The US dollar’s appreciation reflects the heightened risk environment stemming from the escalating conflict in the Middle East.