Dollar Steadfast Amid Middle East Tensions and Central Bank Surprises

The dollar held steady on Thursday amid escalating tensions in the Middle East, where conflict between Iran and Israel has intensified. Concerns over possible U.S. involvement added to market anxiety, even as central banks made unexpected decisions, including a surprise rate cut from Norway.

The Federal Reserve kept interest rates unchanged on Wednesday, yet traders remain focused on geopolitical developments. Investors are speculating on how President Donald Trump might respond to the Middle Eastern crisis, influencing the dollar's status as a safe-haven asset.

Meanwhile, Norway's central bank caught markets off guard with a 25 bps rate cut, contrasting with expectations for stability. The Swiss franc strengthened following a milder-than-anticipated cut by the Swiss National Bank, while the euro saw slight fluctuations against major currencies.

(With inputs from agencies.)