U.S. Dollar Strengthens 0.2% as Trump Warns Iran Over Killed U.S. Troops

The U.S. dollar strengthened on July 20 (Monday), with the Dollar Index (DXY) rising 0.2% to 100.94, as Middle East tensions escalated and geopolitical risk sentiment lifted. President Trump posted on Truth Social that Iran would pay "many times over" for each U.S. soldier killed, instructing Defense Secretary Pete Hegseth and Joint Chiefs Chairman Daniel Caine to implement this directive. The U.S. military reported three service members died in Iranian attacks, following nine consecutive days of American airstrikes in the region.

Meanwhile, newly appointed British Prime Minister Andy Burnham stated he would not "gamble with the UK economy" and would maintain fiscal discipline. Sterling (GBP/USD) fell 0.2% to 1.3434. The euro declined 0.2% to 1.1414 against the dollar.