Dollar Climbs on Fears of a Prolonged Iran War

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The dollar index (DXY00) on Thursday rose by +0.36%. Thursday’s decline in equity markets boosted liquidity demand for the dollar. Also, Wednesday night’s comments from President Trump that the Iran war could escalate have boosted demand for the dollar as a safe-haven. The dollar added to its gains on Thursday on better-than-expected US economic news on weekly jobless claims and the Feb trade deficit. During a speech to the American public on Wednesday evening, Mr. Trump pledged more aggressive action against Iran over the next two to three weeks and offered no concrete plans to reopen the Strait of Hormuz….