The U.S. dollar climbed to a one-week high early Wednesday as doubts surfaced regarding President Trump's announcement of an indefinite ceasefire extension with Iran, boosting demand for the safe-haven currency.
Federal Reserve nominee Kevin Warsh's remarks during a Senate confirmation hearing were interpreted as slightly hawkish. Meanwhile, robust retail sales data offered an optimistic outlook on the U.S. economy.
The U.S. dollar index, tracking its strength against a basket of six major currencies, held steady at 98.415, its highest point since April 13.
Analysts noted a cautious market sentiment driven by renewed uncertainty surrounding U.S.-Iran peace talks. This uncertainty is attributed to divisions within the Iranian government between hardline and moderate factions, posing a significant obstacle to a lasting agreement.
In economic news, U.S. retail sales in March increased by 1.7%, exceeding expectations. Higher gasoline prices due to the conflict and tax refunds contributed to the rise in spending.
Regarding the Federal Reserve, Warsh stated he had made no promises to President Trump about cutting interest rates, emphasizing the Fed's independence. While his comments were seen as hawkish, their market impact was limited, with higher oil prices on Iran-related news likely driving much of the dollar's recent strength.
In cryptocurrencies, Bitcoin rose 0.2% to $75,894.67, and Ether saw a similar uptick to $2,321.92.