US Dollar Strengthens as Talks with Iran in Peril

New York: The US dollar strengthened to its highest level in a week in a broad rally against most other currencies in early Asian trading on Monday, March 13, 2026, as peace talks between the US and Iran failed and the US Navy prepared to blockade Iranian ports.

According to Investing.com, the US dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.5 percent to 99.187, its highest level since April 7.

The euro fell 0.5 percent to USD1.1667 as the British pound fell 0.6 percent to $1.3383, while the Australian dollar fell 0.8 percent to USD0.7014 and the New Zealand dollar fell 0.7 percent to USD0.5798.

Trump Orders Strait of Hormuz Blockade

US President Donald Trump said on Sunday that the US Navy would begin a blockade of the Strait of Hormuz after marathon talks with Iran failed to reach a deal to end the war, jeopardizing a fragile two-week ceasefire.

US Central Command said US forces would begin enforcing a blockade of all maritime traffic in and out of Iranian ports starting at 10.00 on Monday.

"The thin foreign exchange trading that began early this morning suggests a risk-off mood, with a broad rally in the USD in response," wrote analysts from Westpac in a research note.