The dollar is on track for its best monthly performance since July, as Middle East conflict disrupts Wall Street exchange rate expectations.

The US dollar is expected to achieve its best monthly performance since July, as the conflict in the Middle East disrupts Wall Street's trading strategy for the world's major reserve currency. The Bloomberg Dollar Index rose more than 2% in March, driven by safe-haven fund flows, and the skyrocketing oil prices under the war weakened market expectations of a rate cut by the Federal Reserve. This marks a sharp reversal in the trend of the dollar, which had just experienced its fourth consecutive monthly decline before the outbreak of the conflict. With the continuation of hostile actions, banks and investors who were previously pessimistic about the outlook for the dollar are facing increasing pressure. Take JPMorgan Chase as an example, the company's strategists are bullish on the dollar for the first time in a year. In the futures market, speculators are shifting their bets to the US dollar rising, while their short positions in mid-February were at the highest level in about five years.