Dollar posts monthly surge

The dollar headed for its biggest monthly gain since July on Tuesday and stands out as the strongest so-called ​safe asset, as war in the Middle East has set oil prices surging, nearly everything else sinking and raised the risk ‌of global recession.

Developed market currencies were broadly steady on the day, with the Japanese yen unchanged at 159.62 per dollar, the euro flat at $1.1472 and the pound 0.14 percent higher at $1.3202 .

But still all three were set for March falls of more than 2 percent. For the euro and pound, that is the largest drop since July, and since October for ​the yen.

The dollar has been supported by the US status as an energy exporter and by investors’ flight to cash over the past ​month of conflict.

The latest news from the war, including a Wall Street Journal report that US President Donald Trump was ⁠willing to end attacks on Iran without forcing open the Strait of Hormuz, did little for currencies on Tuesday, but did underscore their monthly moves.

“The ​lack of a clear plan to reopen the Strait continues to pose upside risks to global energy prices,” said Lee Hardman, senior currency analyst at MUFG.

“The ​potential for a bigger hit to growth outside of the US continues to encourage a stronger US dollar,” he said.

Asian currencies have suffered some of the largest losses and, on Tuesday, the dollar pushed 1 percent higher against South Korea’s won , to 1,534 won, levels touched only in the wake of the global financial crisis in 2009 and the Asian ​financial crisis in 1997 and 1998.

The dollar index, which tracks the unit against six main peers, touched its highest since last May at 100.64 and, ​last sitting at 100.47, is up 2.8 percent through March.