Dollar Stable As US Rejects Iran Response to Proposal

The dollar became steady after the United States President Donald Trump rejected Iran’s response to its peace proposal on Monday. Donald Trump publicly rejected Iran’s reply, saying it is “totally unacceptable’. Iran and the US have been fighting for a long time, which has started to affect the global money market.

Investors move money into safe assets, as the US dollar is often considered one of the safest currencies. The US dollar index, which measures the greenback’s strength against a basket of six currencies, remained unchanged at 97.995. Meanwhile, the oil price surged with Brent crude 3.6% at $104.94 a barrel. Oil passes through the Strait of Hormuz, which is a major shipping route near Iran.

Due to the current situation, the investors think the war may continue rather than end. People fear that the war could disrupt oil shipments or cause supply to shrink, resulting in higher oil prices and a steady dollar.

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Still, the market believes that conflict could be resolved, said Kenneth Broux, head of corporate research for FX rates at Societe Generale.

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