The U.S. dollar surged on Wednesday following an Iranian missile attack on Israel, as investors sought safe-haven assets amid rising tensions. The dollar index climbed 0.5% to 101.2, driven by strong U.S. job openings data and concerns over Middle East conflict.
The dollar saw its most significant increase in a week on Wednesday, fueled by rising investor anxiety following an Iranian missile attack on Israel. This escalation has driven demand for safe-haven assets as concerns grow over potential wider conflict in the Middle East.
The U.S. dollar index rose roughly 0.5% overnight to 101.2, driven by a job openings report that exceeded expectations.
Early trading in Asia showed limited movement, with the euro remaining below $1.10 after experiencing its largest drop in nearly four months. The yen held steady at 143.45 per dollar, while the Swiss franc was at 0.8463 per dollar. In contrast, the New Zealand dollar faced a setback, down 1.1% at $0.6283, and oil prices jumped by 2.5%.
The Australian dollar also faced pressure, trading at $0.6883, though losses were mitigated by positive retail sales data released earlier this week. The British pound dropped 0.7% overnight but steadied at $1.3278 during early Asian trading.
Westpac strategist Imre Speizer remarked on the unpredictable nature of the situation in the Middle East, suggesting that market sentiment could improve if escalation does not occur, allowing a return to economic fundamentals.
Later today, U.S. private payroll data is expected to be released, alongside a highly anticipated vice presidential debate between Democrat Tim Walz and Republican JD Vance. Traders are also monitoring a significant labor dispute as East and Gulf Coast dockworkers begin their first large-scale strike in nearly 50 years, impacting about half of the country’s ocean shipping.
As the situation unfolds, market participants remain vigilant, balancing geopolitical risks against economic indicators.
The United States imposed sanctions on Thursday on Iran's Oil Minister Mohsen Paknejad and some Hong Kong-flagged vessels that are part of a shadow fleet that helps disguise Iranian oil shipments, the Treasury Department said.
Senior diplomats from Iran, Russia, and China gathered in Beijing on Friday for discussions on Tehran's nuclear programme, following Iran's rejection of U.S. "orders" to resume talks over the issue.
Iran's Foreign Minister Abbas Araqchi has not ruled out negotiations with the US but insists they must be on equal footing. He warned that talks under pressure would be futile, as Supreme Leader Khamenei reiterated that negotiations with Washington would only worsen sanctions.
Iran's Supreme Leader Ayatollah Ali Khamenei on Wednesday rejected holding negotiations with the United States over a nuclear deal, as a letter was delivered from U.S. President Donald Trump calling for such talks.
The US has upheld Iraq's waiver for Iranian gas imports but revoked its power import exemption. The decision poses challenges for Iraq's energy sector, which relies heavily on Iranian gas. The US urges Iraq to diversify energy sources and reduce dependence on Iran.
Bosnia and Herzegovina’s Serb entity, Republika Srpska (RS), adopted a new draft constitution, along with a law on protecting the constitutional order. The legislation expands RS's decision-making powers, challenging the authority of the country’s central government.
Cuba’s power grid has collapsed, causing a nationwide blackout and internet disruptions.
Mark Carney is Canada’s new prime minister, taking office amid a trade war with U.S. President Donald Trump.
A blast at a mosque in northwestern Pakistan injured four people, including two children and a local Islamist party leader, as authorities investigate the attack.
Italy’s Tuscany and Emilia-Romagna regions are grappling with severe flooding and landslides, prompting a red weather alert as heavy rains inundate streets and homes.
XPeng Motors plans to mass-produce flying cars by 2026, becoming the first company globally to do so. CEO He Xiaopeng also highlighted advancements in autonomous driving and humanoid robotics as part of the company’s future tech initiatives.
World leaders welcomed the 30-day ceasefire proposal that Ukraine has agreed to, calling it a step toward ending the conflict with Russia.
In Tuesday’s closely watched parliamentary election, Greenland’s pro-business opposition Demokraatit party took a commanding lead after over 90% of the ballots were counted.
BioNTech forecasts a revenue decline for 2025, expecting between 1.7 billion and 2.2 billion euros, down from 2.75 billion euros last year. This drop is due to Pfizer write-downs and stable vaccination rates. BioNTech also plans significant job cuts and new hires.
Regarding the Armenia-Azerbaijan process, we cannot forget the years of occupation, and we will not forget them, President Ilham Aliyev said in his speech at the opening ceremony of the 12th Global Baku Forum.
BMW expects a €1 billion loss for 2025 due to the US-EU tariff dispute, including a 25% duty on certain vehicles and tariffs on its China-made electric cars. The company hopes not all tariffs will remain for the full year.
Uzbekistan has signed an agreement with French and Japanese companies to initiate uranium production in the Navoi region by the end of 2025.
The United States imposed sanctions on Thursday on Iran's Oil Minister Mohsen Paknejad and some Hong Kong-flagged vessels that are part of a shadow fleet that helps disguise Iranian oil shipments, the Treasury Department said.
Türkiye’s state-owned Turkish Petroleum Corporation signed a joint venture agreement with U.S. oil giants Continental Resources and TransAtlantic Petroleum, Turkish Energy Minister Alparslan Bayraktar announced.
The Bank of Canada trimmed its key policy rate by 25 basis points on Wednesday, lowering it to 2.75%, as concerns mount over inflationary pressures and weaker economic growth driven by renewed trade uncertainties and tariff threats.
Bosnia and Herzegovina’s Serb entity, Republika Srpska (RS), adopted a new draft constitution, along with a law on protecting the constitutional order. The legislation expands RS's decision-making powers, challenging the authority of the country’s central government.
Cuba’s power grid has collapsed, causing a nationwide blackout and internet disruptions.
Mark Carney is Canada’s new prime minister, taking office amid a trade war with U.S. President Donald Trump.
A blast at a mosque in northwestern Pakistan injured four people, including two children and a local Islamist party leader, as authorities investigate the attack.
Italy’s Tuscany and Emilia-Romagna regions are grappling with severe flooding and landslides, prompting a red weather alert as heavy rains inundate streets and homes.
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