Dollar Surges Amid Economic Resilience and Geopolitical Tensions

The dollar marked its strongest weekly gain since October, fueled by robust economic data and a hawkish Federal Reserve perspective amid rising U.S.-Iran tensions. The labor market's stability added to this momentum. Investors keenly observed geopolitical risks, impacting global currencies and oil prices. Upcoming economic indicators promise further volatility.

The dollar experienced its largest weekly surge since October, driven by stronger-than-expected economic data and a heightened Federal Reserve outlook amid intensified U.S.-Iran tensions. The dollar index, tracking the greenback against major currencies, edged higher, marking a 1.1% weekly increase.

American job market stability bolstered the dollar, with unemployment benefit applications declining significantly. This was further endorsed by Federal Reserve minutes revealing divided policymaker opinions on future rate directions amidst persistent inflation, according to Dominic Bunning from Nomura.

President Trump's ultimatum to Iran over its nuclear program heightened geopolitical risks, influencing market dynamics and global currency fluctuations. Investors anticipated U.S. economic data releases for cues on potential Federal Reserve interest rate adjustments.

(With inputs from agencies.)