Anya Andrianova

The dollar advanced for a second straight session as escalating fears of a return to full-scale war between the US and Iran prompted investors to seek shelter.

The New Zealand dollar advanced Thursday to the highest in more than two weeks after strong manufacturing data increased bets on further monetary tightening in the nation.

The dollar’s recent gains are at risk if the selloff in artificial intelligence stocks deepens, according to Apollo Global Management Inc.’s Torsten Slok.

Foreign holdings of US Treasuries increased in May, led by the sometimes-volatile Canadian stockpile, with Japan having drawn down some of its balance.

The dollar got a boost Thursday from haven flows as the war in the Middle East intensified, pushing oil prices above $100 a barrel.

Hedge funds have accumulated the most negative bets on the Canadian dollar in two years as the threat of American tariffs drags on the currency.

The US dollar will weaken if the Federal Reserve leaves interest rates unchanged this week, according to TD Securities.

The dollar will come under pressure and follow oil prices down if the Federal Reserve keeps interest rates unchanged on Wednesday, according to ING.

The dollar fell, touching the lowest in almost a week, after the Federal Reserve kept interest rates unchanged, although several officials voted for an increase.

The yen advanced on Friday as speculation grew that Japanese authorities could again step into the market to support the currency.