Dollar Strengthens Amid Middle East Tensions

The U.S. dollar strengthened against the euro as tensions in the Middle East continued to unsettle investors. The dollar index increased by 0.2% to 98.404, reflecting the U.S. currency's robustness amid ongoing geopolitical conflicts.

Reports from Iranian media suggested that missiles hit a U.S. warship, increasing market caution. However, U.S. Central Command refuted the claims, emphasizing military activities aimed at breaking an Iranian blockade in the Gulf.

The yen showed volatility, witnessing a brief surge. Traders speculate on potential interventions by Japanese finance authorities to stabilize their currency against a backdrop of rising inflation concerns.

(With inputs from agencies.)