The U.S. dollar remained close to its strongest level in two months on Thursday as rising tensions in the Gulf region pushed oil prices higher and made investors more cautious about taking risks.
Higher oil prices and growing geopolitical uncertainty encouraged investors to move toward safer assets, helping support the dollar’s recent gains.
The euro traded at $1.1604, while the British pound held steady at $1.3424 during Asian trading hours. Both currencies showed little movement as traders waited for further developments in global markets.
The Australian dollar, which is often sensitive to changes in investor sentiment, remained stable at $0.7132. Meanwhile, the New Zealand dollar gained 0.2% to reach $0.5872, recovering from a one-week low.
The U.S. Dollar Index, which measures the dollar’s strength against a basket of major currencies, edged higher to 99.47. The index had reached its strongest level since early April during the previous trading session.
In Japan, the yen continued to weaken against the dollar, trading at 159.91. The currency remained close to the important 160 level, a threshold many market participants view as a point where Japanese authorities could step in to support the yen.
Investors are closely watching the situation, as Japanese officials have previously intervened in currency markets when the yen experienced sharp declines.
The cryptocurrency market also faced selling pressure. Bitcoin fell 2.8% to $63,119, marking its lowest level in four months as investors reduced exposure to riskier assets.
Ethereum followed a similar path, dropping to its lowest level in four months and trading at around $1,786.
Overall, global markets remained cautious as investors weighed the impact of rising oil prices, geopolitical tensions, and uncertainty surrounding future economic and monetary policy decisions.
