Dollar rebounds as oil jumps over 5%

Friday, 3 April 2026 00:07 - - {{hitsCtrl.values.hits}}

The US dollar strengthened on Thursday, reversing two consecutive sessions of losses after Donald Trump signalled a prolonged conflict with Iran, dampening market expectations of a near-term resolution and driving demand for safe-haven assets.

In a televised address, Trump said the United States would intensify strikes on Iran over the next two to three weeks, offering no clear timeline on reopening the Strait of Hormuz or ending hostilities that have unsettled global markets.

Iran’s military responded with a warning of “more crushing, broader and more destructive” attacks against the United States and Israel.

The dollar advanced broadly, including against traditional safe-haven currencies. It rose 0.67% to 0.80 against the Swiss franc and gained 0.32% against the Japanese yen to 159.29, approaching the 160 level that has previously triggered concerns over potential intervention by Japanese authorities.

“In the last couple of days there was a bit of optimism that the war was going to end soon and President Trump’s address to the nation yesterday sort of undermined that hope,” Marc Chandler, Chief Market Strategist at Bannockburn Global Forex told Reuters.

“There’s nothing new that he said; it’s just that he didn’t provide any kind of morsels to feed the hope. I think this is the only fundamental right now that matters. If you think the war is going to end soon, you buy risk. If you think that it’s not going to end soon, you sell risk.”

The euro fell 0.38% to $ 1.155150 while sterling declined 0.50% to $ 1.32410, giving up part of their recent gains.

The dollar index, which tracks the currency against a basket of peers, rose 0.35% to 99.92.

Meanwhile, Brent crude futures surged 5.4% to $ 106.66 per barrel, as markets priced in the risk of prolonged disruption to energy supplies.