Dollar strengthens as peace talks falter, US blockade of Iran's ports to begin
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
SINGAPORE: The dollar strengthened to the highest level in a week in a broad rally against most of its peers in early Asian trade on Monday (Apr 13) as peace talks between the United States and Iran broke down and the US Navy prepared a blockade of Iranian ports.
The US dollar index, which measures the greenback's strength against a basket of six currencies, was up as much as 0.5 per cent at US$99.187, its highest level since Apr 7.
The euro was down 0.5 per cent at US$1.1667 as the British pound fell 0.6 per cent to US$1.3383, while the Australian dollar was 0.8 per cent lower at US$0.7014 and the New Zealand dollar was off 0.7 per cent at US$0.5798.
US President Donald Trump said on Sunday that the US Navy would start blockading the Strait of Hormuz after marathon talks with Iran failed to reach a deal to end the war, jeopardising a fragile two-week ceasefire.
The US Central Command said US forces would begin implementing the blockade of all maritime traffic entering and exiting Iranian ports from 10am ET (10pm, Singapore time) on Monday.
"Early and thin FX trading this morning is showcasing a risk-off mood, with the broad-based rally in the USD in response," analysts from Westpac wrote in a research note.
Newsletter
Morning Brief
Subscribe to CNA’s Morning Brief
An automated curation of our top stories to start your day.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app