The US dollar index rose to a one-week high, increasing by 0.20% on Wednesday, driven by heightened safe-haven demand amid escalating tensions in the US-Iran conflict. On the same day, Iran seized two ships in the Strait of Hormuz, claiming they were “endangering maritime security.” In response, President Trump announced an indefinite extension of the ceasefire with Iran.
The Eurozone’s consumer confidence index fell to a 3.25-year low of -20.6, more than expected, which pressured the euro to decline by 0.29%. Additionally, the German government revised its 2026 GDP forecast down to 0.5% from 1.0%, citing the impact of the US-Iran war. Comments from European Central Bank officials indicated no immediate plans to raise interest rates, further weighing on the euro.
Japanese exports saw an 11.7% year-over-year increase in March, surpassing expectations, while imports rose by 10.9%. Despite initial gains, the yen fell by 0.07% as crude oil prices surged over 3%, negatively impacting Japan’s economy, which heavily relies on energy imports.
