FX.co ★ Dollar Steadies as Traders Monitor US-Iran War

The dollar index hovered around 98.8 on Thursday, steadying after coming under pressure in the previous session as investors continued to monitor the escalating US-Iran conflict, following the sinking of an Iranian warship by a US submarine off the coast of Sri Lanka. The broader US-Israeli campaign against Iran has now entered its sixth day, keeping markets on edge over the risk of further escalation and the prospect of a drawn-out confrontation that could dampen economic growth and stoke inflationary pressures. On Wednesday, the dollar retreated after reports suggested Iranian operatives had reached out to Washington to explore possible peace talks, though Tehran later denied making such an approach. In parallel, Treasury Secretary Scott Bessent said President Donald Trump’s recently announced 15% global tariff is likely to come into force later this week. On the data front, US services activity climbed in February to its highest level in more than three and a half years, while private-sector job growth surpassed economists’ expectations.