Feb 18 β€’ 05:00 UTC πŸ‡¬πŸ‡· Greece Naftemporiki

With the support of uncertainty

The U.S. dollar rose against major currencies amid uncertainty in U.S.-Iran negotiations, driven by geopolitical tensions and capital flows.

The U.S. dollar experienced a rise against major currencies driven by geopolitical uncertainty concerning the continuation of U.S.-Iran negotiations. Despite some positive statements from Iranian Foreign Minister, traders remain cautious, treating the dollar as a safe asset during turbulent times. The dollar index rose by 0.28% to 97.18 points, while the euro stabilized around 1.1847 against the dollar after initial losses.

In addition to geopolitical influences, the fluctuations can also be attributed to the impact of artificial intelligence on market dynamics. Analysts note that historically, the dollar performs well during periods of uncertainty, reinforcing investor preference for it over more volatile currencies such as the euro or yen. The yen saw a decline for the second consecutive session following a strong rise linked to the recent electoral victory of Japan's Prime Minister Sanae Takaichi.

Market analysts project that inflows into Japanese equities will provide support for the yen despite its recent losses, which dropped by 0.17% against the dollar during trading. Investors are closely monitoring the developments, as shifts in the valuation of currencies can significantly affect international trade and investment, underscoring the ongoing importance of global political factors in financial markets.

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