Dollar Strengthens as Iran Stalemate and Central Bank Week Boost Safe-Haven Demand
The US dollar strengthened on Tuesday (April 28th) as markets assessed the continued deadlock in U.S.-Iran talks, while market participants prepared for a series of central bank interest rate decisions this week. The dollar index rose 0.2% to 98.64 at 4:52 p.m. ET, with investors again seeking support amid uncertainty over the direction of diplomacy and energy prices.
The focus remains on the nearly closed Strait of Hormuz, keeping oil prices high and fueling concerns about an energy-driven inflation shock. Media reported that President Donald Trump was dissatisfied with Iran's proposal, which offered to open Hormuz and end the conflict, but postponed discussions on the nuclear program to a later stage. CNN reported that Pakistani mediators were expecting a revised proposal from Iran within days. Trump also stated that Iran had informed the U.S. that it was in a "state of collapse" and demanded Hormuz be opened "as soon as possible," amid leadership issues in Tehran.
In Asia, the yen weakened slightly after the Bank of Japan held interest rates at 0.75%, but the decision was split, with three of the nine board members calling for a rate hike to 1%, the largest dissent since January 2016. The BOJ signaled its readiness to tighten further while cutting its growth forecast and raising inflation expectations. In the G10, the euro fell 0.1% to US$1.1713 and the pound weakened 0.1% to US$1.3520, as markets awaited decisions by the Fed, ECB, and BoE in a busy week, amid dollar sensitivity to oil prices, policy signals, and developments on the next Iran proposal. (Arl)
Source: Newsmaker.id
