By Gregor Stuart Hunter
SINGAPORE, April 13 (Reuters) – 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 as peace talks between the U.S. and Iran broke down nL1N40U07M and the U.S. Navy prepared a blockade of Iranian ports.
The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, was up as much as 0.5% at 99.187, its highest level since April 7.
The euro was down 0.5% at $1.1667 as the British pound fell 0.6% to $1.3383, while the Australian dollar was 0.8% lower at $0.7014 and the New Zealand dollar was off 0.7% at $0.5798.
U.S. President Donald Trump said on Sunday the U.S. Navy would start blockading the Strait of Hormuz after marathon talks with Iran failed to reach a deal to end the war, jeopardizing a fragile two-week ceasefire. The U.S. Central Command said U.S. forces would begin implementing the blockade of all maritime traffic entering and exiting Iranian ports from 10 a.m. ET (1400 GMT) 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.
(Reporting by Gregor Stuart Hunter; Editing by Sonali Paul)
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