LONDON: Currency markets took a breather on Wednesday, with traders cautious over US President Donald Trump’s efforts to bring an end to the war with Iran.

The US dollar index, which measures the greenback’s strength against a basket of six currencies, was last 0.13 per cent higher at 99.317, with the euro little changed at $1.1603. The British pound was 0.16pc weaker at $1.3388 as data showed that British consumer price inflation held at an annual rate of 3.0pc in February, unchanged from January’s rate.

However, inflation is broadly expected to pick up as the war in the Middle East pushes up prices. The subdued volatility contrasted with a pickup in equities and a fall in crude oil prices after Trump said on Tuesday the US was making progress in its efforts to negotiate an end to the war.

Against the yen, the US dollar was up a slight 0.2pc at 158.99 after minutes from the Bank of Japan’s January policy meeting showed that many board members saw the need to keep raising interest rates without any specific pace in mind.

Published in Dawn, March 26th, 2026