Dollar Holds Steady as Geopolitical Friction Hits Global Markets

The conflict reached a dangerous threshold after Iran’s Revolutionary Guards launched retaliatory strikes against American military assets in response to U.S. bombardments on Iranian soil. This escalation has rattled energy markets, triggering immediate supply disruptions and stoking fears of a fresh inflationary wave that could further complicate global monetary policy. Despite the geopolitical friction, the greenback showed surprising resilience, holding its ground against both the Japanese yen and the Chinese yuan.

In London, the focus remains firmly on the domestic agenda as Burnham begins the process of cabinet formation. Market participants are scrutinizing his pending choice for finance minister, viewing the appointment as a critical signal of how the new administration intends to navigate the country’s precarious fiscal landscape. With the pound gaining modest momentum, traders are betting that a clear economic policy direction could provide a necessary buffer against the broader international instability.