Dollar Near 3-Week Low as Markets Weigh Iran Conflict

The U.S. dollar hovered near a three-week low on Wednesday. Investors are closely watching the conflict with Iran, which has made currency markets cautious. The euro and the Japanese yen traded in narrow ranges. Traders are waiting for clearer signs of how the Iran war will affect the global economy before making major moves. Both currencies held steady as markets consolidated. A "consolidation" means prices are moving sideways after recent changes, as traders pause to assess new information. The dollar's weakness reflects uncertainty. When global risks rise, investors often move money between currencies, looking for safer places to hold their funds. Markets now focus on whether the conflict will escalate or ease. Any major development could push the dollar, euro, or yen sharply in either direction.