The U.S. dollar is rising modestly against the euro, the pound sterling, and the yen on Tuesday morning amid increased demand for safe-haven assets.
The ICE DXY index, which tracks the dollar’s performance against six currencies (the euro, Swiss franc, yen, Canadian dollar, pound sterling, and Swedish krona), is up 0.1%, while the broader WSJ Dollar Index is up 0.09%.
The U.S. military struck two boats belonging to the Islamic Revolutionary Guard Corps (IRGC) and an anti-aircraft missile system position in Bandar Abbas in southern Iran, Fox News reporter Jennifer Griffin reported.
Meanwhile, U.S. Secretary of State Marco Rubio stated that negotiations with Iran in Qatar are ongoing, though finalizing the wording of the agreement between Washington and Tehran could take several days.
Meanwhile, European Central Bank (ECB) Executive Board member Isabel Schnabel said in an interview with Reuters that the regulator will likely have to raise key interest rates in June, even if the U.S. and Iran manage to sign a peace agreement by then.
“Given the scale and duration of the shock we are seeing, it can no longer be ignored,” she said. “Based on the information available at this time, I believe a rate hike will be necessary in June.”
French Central Bank Governor François Villeroy de Galhau, who will step down at the end of May, told Le Figaro in an interview that the regulator will not hesitate to take measures to curb inflation and bring it back to the 2% target.
As of 9:19 a.m., the euro/dollar pair is trading at $1.1631, compared to $1.1643 at the close of the previous session; the single European currency is down about 0.1%.
The pound fell 0.2% against the dollar to $1.3474, compared to $1.3505 at the close of trading on Monday.
The U.S. dollar rose 0.1% against the yen to 159.06 yen, compared to 158.91 yen at the close of the previous session.
The dollar is stable against the offshore yuan at 6.7875 yuan.
