Dollar Heads for Biggest Weekly Gain in a Month; Oil Slides

Brent crude prices fell more than 2% on Friday but remained near $77 per barrel, close to the January highs reached last week.

Written by: Ignacio Teson • Friday, June 20, 2025 • 2 min read

• Last updated: Friday, June 20, 2025

Quick overview

Uncertainty from the Middle East conflict has increased demand for safe-haven assets, despite a slight dip in the U.S. dollar against the euro and British pound.
The U.S. Dollar Index is set to rise 0.6% this week, marking its largest weekly gain in over a month.
Iran has refused to resume nuclear negotiations while under attack, heightening geopolitical tensions and market anxiety.
Oil prices fell over 2% but remain near $77 per barrel, influencing currency movements in net oil-importing economies.

Uncertainty surrounding the war in the Middle East and its potential global economic fallout has fueled demand for traditional safe-haven assets. On Friday, the U.S. dollar slipped slightly against the euro and British pound, yet remained on track for its biggest weekly gain in over a month.

The conflict between Israel and Iran has intensified over the past week, with Israel conducting airstrikes aimed at curbing Tehran’s nuclear ambitions. Market participants remain on edge amid fears of potential U.S. involvement, which could escalate the crisis further.

The U.S. Dollar Index (DXY)—which tracks the greenback against six major peers including the Swiss franc, Japanese yen, and euro—is poised to rise 0.6% this week.

EUR/USD

Geopolitical Risks Keep Markets on Edge

On Friday, Iran declared it would not resume negotiations over its nuclear program while under attack by Israel, despite European efforts to bring Tehran back to the table.

The White House said Thursday that President Donald Trump will decide within the next two weeks whether the U.S. will join the conflict. While the statement offered a degree of reassurance to investors fearing an imminent U.S. strike, concerns over a broader regional war continued to weigh on risk appetite.

Oil and Currency Markets React

Brent crude prices fell more than 2% on Friday but remained near $77 per barrel, close to the January highs reached last week. The drop in oil prices supported currencies of net oil-importing economies such as the euro and the yen.

The euro rose 0.15% to $1.1517
The yen slipped 0.23% to 145.80 per dollar
The Swiss franc fell 0.15% to 0.8177 per dollar, heading for its largest weekly drop since mid-April after the Swiss National Bank cut interest rates to 0%

Markets remain highly sensitive to geopolitical developments, with risk sentiment and safe-haven flows continuing to drive both currency and commodity movements.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.