The US dollar is emerging as the top safe-haven asset as Middle East tensions fuel market volatility, according to Nathan Thooft of Manulife Investment Management. Thooft has increased his US dollar exposure since the conflict began, viewing it as the most reliable hedge against uncertainty.

Market volatility has intensified following the outbreak of hostilities in the Middle East, prompting investors to seek refuge in traditionally stable assets. The US dollar has historically benefited during periods of geopolitical stress, as global investors flock to American assets perceived as secure. This pattern has repeated itself amid the current crisis.

Thooft's strategic shift toward the US dollar reflects a broader market consensus that the currency offers the best protection during turbulent times. His position underscores the dollar's role as the world's primary reserve currency and its importance in global financial stability during periods of conflict.