The U.S. dollar steadied on Thursday, recovering from earlier declines after upbeat earnings from AI heavyweight Nvidia, as investors looked ahead to further clarity on upcoming U.S. tariff measures.
As of 03:00 ET (08:00 GMT), the US Dollar Index, which measures the greenback against six major peers, was up 0.1% at 97.650. Despite the modest rebound, the index remained on course for a weekly drop of roughly 0.2%.
Dollar Holds Steady Following Strong Results from Nvidia
The dollar steadied after starting the session under pressure, as stronger-than-expected earnings from Nvidia lifted investor sentiment and reduced demand for the traditional safe-haven currency.
The world’s most valuable company reported January-quarter revenue that topped analyst forecasts and projected current-quarter sales above market expectations, reinforcing optimism around the AI theme.
“Improved sentiment has weighed on the dollar over the past 24 hours, with only the yen faring worse among G10 currencies yesterday,” analysts at ING Group noted.
Markets are also watching how the Trump administration responds to the February 20 Supreme Court decision that invalidated the president’s emergency tariffs. Meanwhile, U.S. Trade Representative Jamieson Greer said Wednesday that tariff rates for certain countries will increase to 15% or more from the newly introduced 10%, though he did not specify which trading partners would be affected.
In addition, U.S. and Iranian officials are set to meet in Geneva to discuss a potential nuclear agreement, with Donald Trump warning that “bad things” could occur if meaningful progress is not made.
According to ING, any escalation in tensions could serve as the most credible trigger for a broader dollar rally, particularly given the supportive backdrop from Nvidia’s results and the absence of major economic data releases. Overall, while the dollar may find some near-term stability, downside risks persist as the positive spillover from Nvidia’s earnings keeps investors leaning away from defensive currencies for now.
Euro edges lower
In Europe, EUR/USD slipped 0.1% to 1.1798 ahead of the latest Eurozone consumer confidence data due later in the session.
Still, both these figures and Friday’s inflation release are unlikely to move the needle much for the single currency, as the European Central Bank is widely expected to leave interest rates unchanged for the foreseeable future.
“For now, the EUR/USD short-term rate differential remains unsupportive for the pair, but we haven’t seen a sufficient rebound in dollar confidence to call for a significant downside break. We continue to view 1.1750 as solid support, absent a major escalation involving Iran,” analysts at ING Group said.
Meanwhile, GBP/USD declined 0.3% to 1.3523, with sterling failing to gain traction despite improved sentiment data from the UK’s business and professional services sector.
The latest quarterly survey from the Confederation of British Industry showed optimism in the sector rebounded sharply to -3 in February from -50 in November — its strongest reading since August 2024.
Yen Strengthens Following Interview with Kazuo Ueda
In Asia, USD/JPY slipped 0.3% to 156.01 after Kazuo Ueda, governor of the Bank of Japan, told the Yomiuri Shimbun that policymakers will внимательно assess incoming data at their March and April meetings, keeping the door open to another rate hike if inflation and wage growth remain solid.
His comments bolstered expectations that Japan will stay on a gradual path toward policy normalization.
The yen had weakened the previous day following reports that Prime Minister Sanae Takaichi adopted a cautious stance on additional rate increases, alongside news that two dovish-leaning nominees were selected for the BOJ board.
Meanwhile, USD/CNY declined 0.4% to 6.8392, hitting a fresh 34-month low amid anticipation of supportive measures ahead of China’s annual legislative gathering, the National People’s Congress. Investors are looking for growth targets and potential fiscal stimulus signals from the meeting, which typically outlines Beijing’s economic agenda for the year.
Elsewhere, AUD/USD eased 0.1% to 0.7114, while NZD/USD fell 0.2% to 0.5988.
Sources: Peter Nurse
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