Dollar drifts as US-Iran conflict intensifies

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The dollar has been broadly ⁠steady as uncertainty about the outlook for the conflict in the Middle East has kept traders cautious, Al Jazeera reports.

The dollar index, which ⁠measures the greenback’s strength against a basket of six currencies, was down 0.1 per cent at 100.72.

“Markets, I think, have become somewhat more comfortable with the range of risks to be priced in, and until something happens that catches traders by surprise, we’re just not going to see a huge amount of volatility for the Middle East,” says Nick Rees, head of macro research at Monex Europe.

“It’ll ‌keep markets nervous. It’ll keep markets cautious. But I think we’re really going back to where we were, not in April but in May, where volatility ground lower because we saw just a general lack of conviction on where things were going to trade next.”