Key Takeaways

• First weekly gain in three: The U.S. dollar is on course for its first weekly advance in three weeks, buoyed by safe-haven flows amid the U.S.-Iran standoff.
• Index steady: The dollar index held broadly flat at 98.80, with the euro unchanged at $1.1686 and the British pound ticking up 0.1% to $1.3483.
• Energy insulation advantage: Investors are flocking to the greenback partly because America’s status as a major energy exporter shields it from shocks tied to the Strait of Hormuz closure.
• No quick resolution in sight: Despite an indefinite U.S.-Iran ceasefire, Tehran keeps attacking ships in Hormuz while Washington continues seizing vessels breaching its naval blockade.
• Trump in “no rush”: The president reaffirmed he is in no hurry to end the conflict, even as Israel and Lebanon extended their ceasefire by three weeks.
• Asian currencies under pressure: The Japanese yen weakened notably despite hotter-than-expected March inflation, as markets remain convinced the BOJ will stay on hold next Tuesday.

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The U.S. dollar was tracking toward its first weekly gain in three weeks on Friday, as the ongoing standoff between the United States and Iran continued to fuel safe-haven demand for the world’s reserve currency.

As of 05:49 ET (09:49 GMT), the U.S. dollar index — which measures the greenback against a basket of major peers — was broadly unchanged at 98.80. The euro also held steady against the dollar at $1.1686, while the British pound nudged 0.1% higher to $1.3483.

Dollar Emerges as a Relative Safe Port

Investors have been gravitating toward the U.S. dollar as a relative sanctuary, drawn in part by America’s position as a major energy exporter — a status that could help cushion the country from any energy shock stemming from the effective shutdown of the Strait of Hormuz.

Markets remained skeptical that a quick resolution to the Iran conflict was within reach. While Washington did extend its ceasefire with Tehran indefinitely earlier in the week, Iran continued its attacks on vessels navigating the Strait of Hormuz, and the United States has seized ships attempting to breach its naval blockade in the area.

U.S. President Donald Trump declared on Thursday that he was in no hurry to bring the war to a close, even as Israel and Lebanon agreed to a three-week extension of their own ceasefire.

Asian Currencies Lose Ground

Elsewhere across the currency landscape, most Asian units lost ground against the dollar. The Japanese yen posted particularly notable weakness after fresh data revealed that consumer inflation in Japan accelerated more sharply than forecast in March. Despite the hotter reading, markets remained firmly convinced that the Bank of Japan is unlikely to raise interest rates at its policy meeting next Tuesday.