The dollar index (DXY00) on Wednesday rose to a 1-week high and finished up by +0.20%. The dollar found support on Wednesday as the escalation of the US-Iran war boosted safe-haven demand for the dollar. Iran seized two ships on Wednesday in the Strait of Hormuz for "endangering maritime security," and the UK Navy said Islamic Revolutionary Guard Corps gunboats fired upon two other cargo ships.
Gains in the dollar were limited on Wednesday after a rally in stocks reduced liquidity demand for the dollar, following President Trump's announcement that he will indefinitely extend the ceasefire with Iran.
