U.S. Dollar Rebounds Amid War De-escalation Hopes

The U.S. dollar gained strength against major currencies on Thursday, reflecting a technical rebound as investors monitored developments in U.S.-Iran relations. U.S. President Donald Trump noted progress towards ending hostilities with Iran, although significant divisions linger, particularly regarding Tehran's nuclear goals.

Elias Haddad from Brown Brothers Harriman in London highlighted a slight relief rally for the dollar, underpinned by diplomatic efforts to ease tensions in the U.S.-Iran conflict. Despite this recovery, expectations remain that the dollar's upward momentum might face constraints.

The euro slipped from a seven-week high amid the dollar's resurgence, while sterling and the yen experienced mixed movements. Meanwhile, economic data helped buoy the Australian dollar, which rose on employment gains before slightly retreating.