02.01.202420:12:00UTC+00U.S. Dollar Starts New Year On Upbeat Note

Following a disappointing final month of 2023, the value of the U.S. dollar showed a strong move to the upside to start the new year.

The U.S. dollar index has jumped 0.90 points or 0.9 percent to 102.23, climbing further off the five-month lows set during trading last week.

The buck is trading at 142.01 yen versus the 141.06 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0942 compared to last Friday's $1.1036.

The advance by the dollar may reflect its appeal a safe haven, as Middle East tensions escalated after U.S. helicopters repelled an attack on Sunday by Iran-backed Houthi militants on a Maersk container vessel in the Red Sea.

Iran subsequently announced that it has dispatched a destroyer to the Red Sea, although state media said the Alborz destroyer is operating as part of the flotillas that take part in regular missions in international waters.

The increase in the value of the U.S. dollar also comes amid a notable increase by treasury yields, with the benchmark ten-year yield climbing further off last week's five-month lows.