New Delhi, March 3 -- So much for de-dollarization. With conflict spreading in the Middle East, it's the U.S. dollar that is the star in currency markets, reasserting its status as a haven.

The DXY dollar index-which tracks the value of the currency against a basket of major peers-was up 0.4% at 98.79 early Tuesday. While other assets boosted by the fighting in Iran and elsewhere have given up their initial gains, the greenback remains at its highest levels in more than a month.

"The move was a strong indication that the U.S. dollar remains the go-to safe-haven currency for investors, and that those calling for further weakness due to de-dollarization may be a bit early," wrote David Morrison, senior market analyst at Trade Nation in a ...