US Dollar Strengthens Following Trump Speech on Iran War

The dollar surged on Thursday, reversing two days of losses as a safe-haven bid was reignited by a tough stance from the United States regarding ongoing conflict with Iran. President Donald Trump’s televised address on Wednesday night signaled a more aggressive military strategy, dampening market hopes for a quick resolution to the hostilities that have disrupted global markets. The greenback gained ground even against traditional safe-haven peers. USD/CHF strengthened by 0.67% to reach 0.8 against the currency of Switzerland. Meanwhile, USD/JPY rose 0.32% to 159.29, edging closer to the critical 160 level that often prompts concerns of market intervention by authorities in Japan. Marc Chandler, chief market strategist at Bannockburn Global Forex, noted that the President's speech effectively removed the recent optimism that had supported riskier assets. > In the last couple of days there was a bit of optimism that the war was going to end soon and President Trumps address to the nation yesterday sort of undermined that hope. > If you think the war is going to end soon, you buy risk, but if you think that its not going to end soon, you sell risk. Major European currencies retreated as the dollar index climbed 0.35% to 99.92. EUR/USD dropped 0.38% to $1.155150, while GBP/USD fell 0.50% to $1.32410, as the United Kingdom currency gave back recent gains. The escalation in rhetoric was met with a stern response from the Iranian military, which warned both the U.S. and Israel of more destructive retaliatory strikes. This geopolitical tension sent Brent Crude Oil futures up by nearly 5.4%, settling at $106.66 per barrel due to fears of prolonged supply disruptions. Beyond the conflict, investors are preparing for the upcoming non-farm payrolls report from the U.S., which will provide further economic signals for the Federal Reserve's interest rate path. Economists are currently forecasting a rise of 60,000 jobs for March. In other currency markets, AUD/USD weakened by 0.19% to $0.6912 as investors moved away from the currency of Australia. Digital assets also faced selling pressure, with Bitcoin falling 1.86% to $66,907.41 and Ethereum declining 3.65% to $2,065.24. Additional reporting for this story was provided by teams in Hong Kong and London.