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The greenback was stronger against most major counterparts on Monday, as news on the Middle East conflict suggests that no end is in immediate sight, with the dollar index remaining above the 100-point mark. US President Donald Trump threatened to destroy Iran’s oil export hub of Kharg Island, oil wells and power plants if it does not soon agree to a deal to end the war. A day after telling reporters on Air Force One that a deal with Iran may be reached ‘soon’, Trump wrote on his Truth Social network that the US is in ‘serious discussions’ with ‘a more reasonable regime’ in Tehran. However, he added that if ‘a deal is not shortly reached...and if the Hormuz Strait is not immediately ’Open for Business,’’ the US ‘will conclude our lovely ’stay’ in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)’. ‘Markets continue to grapple with the fallout from ongoing tensions in the Middle East. The prospect of prolonged supply disruptions prompted investors to reassess the Federal Reserve’s policy trajectory. Elevated energy costs have revived expectations of a cautious monetary policy, benefiting the greenback,’ commented Kudotrade’s Konstantinos Chrysikos. The dollar index rose to 100.34 points on Monday afternoon, from 100.06 a day earlier. The dollar softened against the Japanese yen to JP¥159.46 from JP¥159.91 at around the same time on Friday. ‘USDJPY briefly moved above the 160 level during the Asian session this morning but failed to hold gains and quickly pulled back,’ XS’ Linh Tran noted, citing ‘ongoing geopolitical risks’ and the Bank of Japan’s ‘limited’ ability to raise interest rates at a faster pace. ‘However, the pair’s failure to sustain levels above 160 suggests that this area is more than just a psychological threshold - it is becoming a zone of strong market reaction,’ Tran continued. ‘As the exchange rate pushes deeper into this region, policy considerations begin to outweigh traditional macro drivers, leading to a noticeable increase in volatility.’ Versus its Australian counterpart, the dollar firmed to A$1.4568 from A$1.4524. It also rose to C$1.3918 from C$1.3870 against its Canadian counterpart. The buck was also stronger against the Swiss franc, which fell to $1.2498 from $1.2548. Meanwhile in the eurozone, consumer prices in Germany are expected to have risen 2.7% year-on-year in March, up from 1.9% in February and in-line with FXStreet-cited consensus. On a monthly basis, prices increased by 1.1% in March, accelerating from 0.2% in February and ahead of FXStreet expectations of a 0.9% rise. The harmonised index of consumer prices, the eurozone’s preferred gauge, rose 2.8% annually, up from 2.0% in February, and 1.2% on the month. Across the euro area, the economic sentiment indicator fell 1.6 points on-month to 96.6 points in March, marginally above consensus for a reading of 96.5 points. In the EU as a whole, the indicator fell by 1.5 points to 96.7. The euro declined to $1.1483 from $1.1516, while sterling decreased to $1.3234 from $1.3279. Against the euro, the pound edged lower to €1.1526 from €1.1528. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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