The US dollar edged higher on Tuesday as global markets adopted a cautious stance amid the ongoing Middle East conflict, even after US President Donald Trump delayed planned strikes on Iran’s power grid.
“The news overnight is giving a breather to volatility at least, but it’s difficult to see that this is going to trigger a risk-on trend,” said Rodrigo Catril, currency strategist at National Australia Bank.
Markets remain uncertain whether Washington’s move signals genuine negotiations with Tehran or a temporary retreat from volatile rhetoric. Analysts said investors are monitoring both geopolitical developments and Trump’s policy track record for guidance.
Major currencies showed mixed performance:
- Sterling fell 0.49% to $1.3388 after a near 1% gain in the previous session.
- Euro slipped 0.3% to $1.1583 following a 0.4% rise.
- Australian dollar dropped 0.6% to $0.6968, retreating from a six-week high.
- New Zealand dollar fell 0.5% to $0.5832.
- Japanese yen weakened to 158.73 per dollar, pressured after Japan’s core consumer inflation for February came in at 1.6%, below the Bank of Japan’s 2% target for the first time in nearly four years.
Oil prices rebounded after Monday’s sharp declines, with Brent crude futures climbing to $100.94 a barrel on renewed supply concerns. Analysts said the market remains highly sensitive to developments in the Gulf amid potential disruptions to energy exports.