Dollar Rallies Amid Middle East Tensions After Trump's Address

The dollar recovered against major currencies following President Trump's address on the Iran conflict, which dashed hopes for a ceasefire. The dollar index climbed as investors returned to safe-haven assets amidst escalating tensions. Trump's remarks left markets uncertain, leading to a decline in global currencies against the dollar.

The dollar strengthened against major currencies on Thursday following U.S. President Donald Trump's address on the Iran conflict. The hope for a potential ceasefire was shattered, leaving investors on edge and impacting markets globally.

The dollar index hit 99.925 post-speech, closing at 99.861, gaining 0.3%. This uptick, fueled by safe-haven demand, reversed a two-day slump. Trump's assurance of ongoing U.S. military operations dampened market sentiment, causing a drop in other currencies. Carol Kong, a currency strategist, noted markets are grappling with possible prolonged conflict and a global economic slowdown.

The euro and sterling both fell, losing 0.3% against the dollar. Meanwhile, the Australian and New Zealand dollars dropped by 0.6%. The Japanese yen also weakened but remained above intervention levels. Market focus now shifts to the U.S. non-farm payrolls report, with a muted jobs growth outlook possibly reigniting Federal Reserve rate cut expectations.

(With inputs from agencies.)