Dollar Holds Strength Amid Renewed Gulf Tensions

The US dollar remained strong against most major currencies on Thursday, supported by renewed tensions in the Gulf region that revived demand for safe-haven assets.

The dollar traded at 162.41 yen, hovering near its strongest level since early July 2026. The euro and the British pound saw negligible changes, trading at $1.1426 and $1.3392 respectively.

The dollar index, which measures the US currency's performance against a basket of six other currencies, remained largely unchanged at 100.96 points.

Kyle Roda, chief market analyst at Capital.com, stated, "The escalation of tensions in the Middle East has unsettled global markets once again, reintroducing a war risk premium into asset prices."

He added that a key secondary effect of rising oil prices is its implications for inflation and global interest rates. "A surge in oil prices could accelerate the timing of a US interest rate hike," Roda noted.