The dollar index (DXY00) on Monday fell by -0.24%. The dollar gave up an early advance on Monday and fell to a 1.25-month low after stocks recovered when President Trump said that Iran still wanted to make a deal and reached out to the US over peace negotiations as the US began a naval blockade of the Strait of Hormuz. The dollar also fell on Monday after US Mar existing home sales fell more than expected to a 9-month low. The dollar initially moved higher on Monday after the US-Iran peace talks broke down over the weekend and President Trump ordered a naval blockade of the Strait of Hormuz, raising the risk of a further escalation of hostilities in the Middle East.
President Trump ordered a blockade of the Strait of Hormuz following the deadlocked peace talks over the weekend between the US and Iran. President Trump said the US will begin a full naval blockade of the Strait of Hormuz today and threatened to retaliate in the event of Iranian resistance. Iran said it would target all ports in and close to the Persian Gulf if its own shipping hubs are threatened.
