Forex Today: US Dollar holds safe-haven bid as Middle East tensions escalate
Here is what you need to know on Wednesday, March 4:
The US Dollar (USD) is drawing safe-haven support amid sharply escalating tensions in the Middle East, prompting renewed investor concern. Recent remarks from US President Donald Trump and Secretary of State Marco Rubio, including references to potential further military action against Iran, have reinforced the Greenback’s safe-haven status. On another note, concerns about higher global inflation have pushed Oil prices higher amid fears of supply disruptions through the Strait of Hormuz.
The US Dollar Index (DXY) is trading near the 99.10 price region, stepping down from 99.68, a high it hadn’t touched since November 2025 amid a geopolitical crisis stemming from the US-Israel strikes on Iran.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.64% | 0.31% | 0.19% | -0.03% | 0.60% | 0.72% | 0.24% | |
| EUR | -0.64% | -0.33% | -0.48% | -0.68% | -0.04% | 0.10% | -0.40% | |
| GBP | -0.31% | 0.33% | -0.17% | -0.34% | 0.29% | 0.44% | -0.07% | |
| JPY | -0.19% | 0.48% | 0.17% | -0.21% | 0.42% | 0.57% | 0.06% | |
| CAD | 0.03% | 0.68% | 0.34% | 0.21% | 0.64% | 0.78% | 0.27% | |
| AUD | -0.60% | 0.04% | -0.29% | -0.42% | -0.64% | 0.14% | -0.36% | |
| NZD | -0.72% | -0.10% | -0.44% | -0.57% | -0.78% | -0.14% | -0.51% | |
| CHF | -0.24% | 0.40% | 0.07% | -0.06% | -0.27% | 0.36% | 0.51% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
EUR/USD is trading near 1,1600, trimming back a big chunk of its intraday losses after hitting its lowest level since November 2025.
GBP/USD is trading near the 1.3330 price zone, slipping hard before recovering a big part of its losses during the American session after Iran’s envoy to the United Nations (UN) said that Tehran has not contacted the US about possible peace talks, while sirens sounded in Kuwait, according to Al Hadath.
USD/JPY rises to the 157.50 price level, trading in a neutral zone after receding some of its gains during the American session.
AUD/USD is trading near 0.7050 price region after it fell sharply before the start of the American session. Market attention now shifts to Australia’s Services Purchasing Managers Index (PMI) due later in the day, as well as the Q4 Gross Domestic Product (GDP) report scheduled for Wednesday, alongside China’s PMI figures, which may have an impact on the Aussie, given Australia’s strong trade ties with China.
Gold is trading at $5,118, stepping down from the $5,379 it touched earlier in the day as US Treasury yields weigh on the non-yielding metal, even as the geopolitical crisis surrounding the US-Iran conflict keeps investors on their toes.
What’s next in the docket:
Wednesday, March 4:
- Australian Q4 GDP.
- Chinese February NBS Manufacturing PMIs.
- Chinese February RatingDog Services PMI.
- Swiss February CPI.
- Spain Feb HCOB PMI.
- Germany Feb HCOB PMI.
- Eurozone Feb HCOB PMIs.
- Eurozone Jan PPIs.
- Italian Q4 GDP.
- US ADP Employment Change.
- US S&P Feb Global Composite PMI
- US Feb ISM Services Employment Index.
- US Feb ISM Services New Orders Index.
- US Feb ISM Services PMI.
- US Feb ISM Services Prices Paid.
- US Fed's Beige Book.
Thursday, March 5:
- Australian January Trade Balance.
- Eurozone January Retail Sales
- US February Challenger Job Cuts
- US Initial Jobless Claims
- US flash Nonfarm Productivity
- US flash Unit Labor Costs (Q4).
Friday, March 6:
- Germany January Factory Orders n.s.a.
- Eurozone Employment Change (Q4).
- Eurozone GDP (QoQ) (Q4).
- US February Average Hourly Earnings.
- US February Labor Force Participation Rate.
- US February Nonfarm Payrolls.
- US January Retail Sales.
- US February U6 Underemployment Rate.
- US February Unemployment Rate
- Canadian February Ivey PMIs.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Author
Agustin Wazne
FXStreet
Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.
