(Bloomberg) -- The dollar advanced as traders are gauging the prospects of US-Iran ceasefire talks. The Australian dollar was lagging behind peers in the Group of 10 against the greenback.
- Bloomberg Dollar Spot Index rose 0.2% Tuesday
- The White House insisted that peace talks with Iran are ongoing, even as Tehran publicly rejected US overtures and issued fresh conditions of its own to end the conflict that’s wreaked havoc across the Middle East and global markets
- “Discussions may be ongoing but there is little willingness from either side to compromise, so there’s still a high level of uncertainty that this will actually produce a resolution,” said Monex’s Andrew Hazlett. “Either way, troops are still en route, Saudi is still pushing for hostilities to continue, and energy prices are still under pressure”
- Fund managers rebalancing their global portfolios will have to buy dollars into the end of March and the first quarter amid a sizable slump in US stocks, according to Barclays Plc.
- EUR/USD declined 0.4% to 1.1559 even as Germany’s business outlook soured due to higher energy prices threatening to derail its nascent economic revival
- UK inflation held at an 11-month low before the war in Iran sent motor fuel costs soaring and threatened to deliver another shock to household finances
- Australian inflation remained elevated in February, even before the Iran war disrupted, highlighting persistent price pressures in the economy
- USD/CAD climbed 0.4% to 1.3820, highest level since Jan. 22
Reporting by Anya Andrianova and James Hirai
