Doha: The dollar headed for its biggest monthly gain since July on Tuesday, emerging as the strongest "safe asset" in light of the escalating conflict in the Middle East. The turmoil has caused oil prices to surge, affected global markets, and heightened fears of a global recession.

According to Qatar News Agency, the dollar's strength was evident as it pushed the South Korean won to 1,534 won, a level last seen during the global financial crisis in 2009 and the Asian financial crisis in the late 1990s. The euro remained below $1.15, while both the sterling and the Australian and New Zealand dollars lingered at multi-month lows.

The Japanese yen weakened, touching its lowest since July 2024, trading at 159.52 per dollar. The US dollar index surged to its highest since last May, reaching 100.61 on Monday before settling at 100.47. This marks a 2.9% rise through March, signifying the sharpest monthly increase since July.

The dollar's performance was also notable against the Swiss franc, with a 4% increase for the month, reaching 0.80 francs. It breached key resistance levels for both the Australian dollar and the New Zealand dollar in recent trading sessions. The New Zealand dollar, down for six consecutive sessions, teetered on the edge of dropping below 57 cents.

The Australian dollar fell for eight straight sessions, hitting a two-month low of $0.6834, a 3.7% decline for March, and slipping below significant support at $0.6897. Meanwhile, the British pound hovered just above $1.32.