The dollar rose to a one-week high on Monday, broadly gaining against most rival currencies in early Asian trades. This followed the collapse of peace talks between the United States and Iran and the U.S. Navy's preparation to control shipping in Iranian ports. The U.S. dollar index, which measures the dollar's performance against a basket of six currencies, gained 0.5% to 99.187, its highest level since April 7. U.S. President Donald Trump said on Sunday that the U.S. Navy would begin controlling shipping in the Strait of Hormuz after lengthy talks with Iran failed to reach an agreement to end the war, jeopardizing a two-week ceasefire. U.S. Central Command stated that American forces would begin controlling inbound and outbound shipping in Iranian ports starting at 10 a.m. Eastern Time (1400 GMT) on Monday. Analysts at Westpac wrote in a research note: "Early and thin FX trading this morning shows risk-averse sentiment, with a broad-based rally in the U.S. dollar in response." The euro fell 0.5% to $1.1667, while the British pound dropped 0.6% to $1.3383. The Australian dollar declined 0.8% to $0.7014, and the New Zealand dollar fell 0.7% to $0.5798.
