The U.S. dollar remained stable during trading on Thursday, supported by growing demand for safe-haven assets.
Amid ongoing tensions between the United States and Iran, which have pushed up oil prices and brought concerns about global inflation back to the forefront.
The dollar index, which measures the US currency’s performance against a basket of major currencies, stood at around 101.11 points.
Meanwhile, Brent crude futures rose more than 1.3% to $95.31 per barrel, after the U.S. military announced it had carried out new strikes against Iran.
Analysts believe that rising energy prices may prompt the Federal Reserve to maintain a hawkish monetary policy.
This is expected to bolster the dollar’s strength in the coming period.
In contrast, the euro stabilized at $1.1412 ahead of the European Central Bank meeting.
This comes amid expectations that interest rates will remain unchanged, while leaving the door open for further tightening if inflationary pressures persist.
As for the Japanese yen, it remained near its lowest levels in nearly 40 years at 163.1 yen per dollar.
This is despite hints from Bank of Japan officials that the pace of interest rate hikes could accelerate.
Analysts attribute the continued weakness of the Japanese currency to the strength of the dollar and the widening gap between interest rates in the United States and Japan.
Investors continue to monitor geopolitical developments and central bank decisions, given their direct impact on global currency rates and financial market trends.
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