The U.S. dollar stabilized on Thursday after earlier weakness, supported by stronger-than-expected earnings from Nvidia. Investors are now turning their attention to fresh developments around U.S. tariffs and geopolitical risks.
At 03:00 ET (08:00 GMT), the Dollar Index, which measures the greenback against a basket of six major currencies, rose 0.1% to 97.650. Despite the modest rebound, the index remains on course for a weekly decline of roughly 0.2%.
Dollar steadies after Nvidia earnings boost confidence
The dollar recovered after starting the session under pressure. Solid quarterly results from Nvidia improved overall market sentiment, reducing demand for traditional safe-haven assets such as the U.S. currency.
The technology giant reported January-quarter revenue above analyst forecasts and projected current-quarter sales ahead of market expectations. The upbeat outlook helped lift equities and tempered defensive positioning in currency markets.
According to analysts at ING, improved risk appetite over the past 24 hours has weighed on the dollar, with only the Japanese yen underperforming more among G10 currencies.
Tariff policy and nuclear talks in focus
Market participants are closely monitoring the Trump administration’s response to the Supreme Court ruling on February 20 that invalidated certain emergency tariffs.
U.S. Trade Representative Jamieson Greer stated that tariff rates for some countries could increase to 15% or higher from the recently imposed 10%, although no specific countries were named.
In addition, U.S. and Iranian officials are meeting in Geneva to discuss a potential nuclear agreement. U.S. President Donald Trump warned that serious consequences could follow if meaningful progress is not achieved.
Analysts suggest that any escalation in Middle East tensions could act as a catalyst for a broader dollar rally. However, in the absence of major economic data releases, Nvidia’s strong earnings may continue to limit safe-haven demand in the short term.
Euro edges lower ahead of data
In Europe, EUR/USD slipped 0.1% to 1.1798 ahead of Eurozone consumer confidence data. Inflation figures due on Friday are also unlikely to significantly influence the euro, as the European Central Bank is expected to keep interest rates unchanged for the time being.
ING noted that short-term rate differentials do not currently favor the euro, but confidence in the dollar has not recovered enough to signal a major decline in EUR/USD. The 1.1750 level is seen as key support, unless geopolitical risks intensify.
GBP/USD fell 0.3% to 1.3523. Sterling struggled despite survey data from the Confederation of British Industry showing a notable improvement in sentiment within the business and professional services sector. Optimism rose to -3 in February from -50 in November, marking the strongest reading since August 2024.
Yen strengthens on Bank of Japan comments
In Asia, USD/JPY declined 0.3% to 156.01 after Bank of Japan Governor Kazuo Ueda indicated that policymakers will carefully assess incoming data at their March and April meetings. He left open the possibility of another rate hike if inflation and wage growth remain firm.
The remarks reinforced expectations that Japan may continue its gradual policy normalization. The yen had weakened earlier following reports that Prime Minister Sanae Takaichi adopted a cautious stance on further rate increases and after the nomination of two dovish candidates to the BOJ board.
USD/CNY fell 0.4% to 6.8392, reaching a new 34-month low. The move reflects expectations of policy support ahead of China’s National People’s Congress, where investors are looking for growth targets and potential fiscal stimulus signals.
Elsewhere, AUD/USD eased 0.1% to 0.7114, while NZD/USD declined 0.2% to 0.5988.
