The EUR/USD slumped to its lowest level since November as traders sought the safety of the safe haven dollar as conflict in the Middle East gathered pace.
The British pound declined to a multi month low, despite expectations that the Bank of England might be forced to push back interest rate cuts amid fears of inflation due to rising energy prices.
The USD/JPY jumped to a six week peak on expectations that the Bank of Japan might delay a previously expected rate cut in March.
Gold prices were under pressure after traders piled into the greenback, making gold more expensive for foreign currency traders.
US S&P 500 stocks finished lower, amid fears that a protracted US Iran war could increase inflation and potentially delay Fed rate cuts until the second half of the year.
Oil prices surged to their highest levels since October 2023 after Iran closed the Strait of Hormuz and investors worried about a potential supply shock.