The U.S. dollar is trading near its highest levels in nearly 11 months as global investors pause ahead of a U.S.-imposed deadline for Iran. Tensions surrounding the Strait of Hormuz have sent energy prices soaring, driving demand for the dollar as a safe haven asset.
Iran has shown no indication of complying with President Donald Trump's demand to reopen the Strait of Hormuz before his deadline. Analysts suggest the dollar is likely to remain strong until a ceasefire or a significant postponement of the deadline occurs.
Brent crude futures remain around $110 a barrel, with Iran's rejection of a U.S. ceasefire proposal keeping geopolitical tensions high. The U.S. dollar index stands at 100.00, nearing last week's peak of 100.64.
Investors are also closely monitoring U.S. economic data for insights into the Federal Reserve's future policy decisions. Key releases include durable goods orders, PCE inflation, and consumer sentiment, alongside minutes from the March FOMC meeting.
Meanwhile, the euro is stable around $1.1550, with traders factoring in potential European Central Bank rate hikes. ECB officials have signaled readiness to act against persistent inflation.