The U.S. dollar advanced against major currencies as traders reacted to stalled Iran diplomacy and rising inflation pressures.
Iran is reviewing a U.S. peace proposal but insists on sovereignty over the Strait of Hormuz, rejecting claims of direct negotiations. President Trump cited progress; Tehran denied any talks.
U.S. import prices surged in February-the largest increase in nearly four years-fueling concerns over persistent inflation. The dollar index rose 0.44% to 99.62. The euro slipped to $1.1562, and the pound fell to $1.3362.
Sterling gained no traction despite steady UK inflation at 3%. Meanwhile, the yen strengthened as Bank of Japan officials signaled further rate hikes. The Australian dollar dropped 0.63% as February inflation came in below expectations.
Fed funds futures now price in a small chance of a December rate hike-up from expectations of a cut just a week ago. The ECB and BOJ are also trending hawkish, narrowing global yield differentials.
Crude oil dipped 1.37% to $103.06 per barrel. Bitcoin rose 1.2% to $70,900.42; ether gained 0.8% to $2,165.12.