The dollar gained slightly on Wednesday as ongoing fears of the war in the Middle East escalating kept risk appetite in check. While any indication of a swift resolution to the U.S.-Israel war on Iran has tempered dollar gains, conflicting signals have left traders without clear direction. "The impact on global growth and inflation will hinge on the scale and duration of higher energy prices, which remains highly uncertain," Capital Economics analysts wrote. Markets have been pricing in rate hikes from the European Central Bank over the past week, although policymakers said the central bank should take its time to reassess policy and stay on its present course for now. The central bank has kept rates unchanged since June 2025.

Source: The Telegraph March 11, 2026 11:32 UTC