Quick overview

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The US dollar strengthened alongside the Swiss franc and the safe-haven Japanese yen after news emerged that Israel had attacked Iran.  Israel has begun its assault on Iran without any help or involvement from the United States.

 

According to a different report, explosions were heard northeast of Tehran, the capital of Iran. The dollar index, which weighs the dollar’s strength against six other currencies, rose by 0.4 percent.

 The U.S dollar declined 0.35 percent to 143 against the yen while the Swiss franc fell 0.4 percent to 0.807 against the greenback.

The dollar index dropped to multi-year lows early this week due to a lack of investor enthusiasm for the safe-haven currency. A trade truce with China and colder-than-expected inflation data intensified expectations that the Fed would cut interest rates more aggressively.

Iran had previously threatened retaliation for any assault. Israel Katz, the Israeli Defense Minister, stated in a declaration that Israel’s “preemptive strike against Iran” is the reason for proclaiming a special state of emergency.

Katz mentioned in his statement that Israel expects a counterstrike by drones and missiles. The assault coincided with growing concerns regarding diplomatic efforts to ease tensions stemming from Iran’s nuclear program.

President Donald Trump remarked this week that he is less optimistic about the likelihood of a deal, even though US and Iranian negotiators are meeting in Oman on Sunday for their sixth round of negotiations..