Israel attacks Iran: Dollar's gaining too - what it means for Indian rupee, Philippines Peso

Dubai: Not just gold, the dollar too is trending higher.

But unlike with gold prices, the dollar had been trading lower against key global currencies, as worries over the Trump tariffs, the US economy and its sprawling budget deficit kept worrying markets and investors.

The dollar index – which is a benchmark of the dollar’s standing against key currencies – has inched up marginally to just over 98 from year-to-date lows of 97.62.

It will also mean changes to currencies such as the Indian and Pakistan rupee as well as the Philippines peso.

The dollar's is up for a volatile ride, but so far the indications are that it's firming up.

The dollar index had been at 110 in January, just ahead of the Trump inauguration on January 20.

If the dollar maintains its upward movement, expats in the UAE will do well to keep close track.

The Indian rupee is at 23.19 to the dirham, more or less holding the line for now.

The Pakistan rupee is at 78.05 to the dirham for now, after being stuck at 77.23 for the better part of last week.

The Philippines Peso is showing some fluctuations at 15.17/15.19 against the dirham.

"The dollar index (DXY) had started June on a volatile note, rebounding sharply from a six-week low of 98.50 to close above the 99.00 mark," said Arun John, Chief Market Analyst at Century Financial.

"As the month unfolds, market attention remains firmly on a packed US data calendar, including the June 12 CPI (consumer price index) release and FOMC meeting, where the updated dot plot could shift the interest rate narrative.

"Unless the dollar index breaks decisively above the 100–100.50 zone, rallies may prove short-lived. Without a strong bullish catalyst from incoming data, the dollar’s recent rebound could fade.

"Overall, June is likely to be driven by macro releases and Fed communication, with the dollar index expected to trade in a broad 96.70–100.50 range as traders react to each new data point."

But now, the sparking of a fresh Israel-Iran crisis has upended all the talk about US economy. Analysts wonder whether the dollar will start getting serious interest as a storehouse of value, or whether that's a role only gold will play this time out.