US Dollar Steady Before Trump's Iran Deadline on Tuesday

The United States dollar maintained a firm position on Tuesday, trading near its highest levels in nearly 11 months as investors awaited the expiration of a critical deadline involving Iran. Market participants are focused on a U.S.-imposed requirement for the reopening of the Strait of Hormuz, a vital shipping lane, by 8 p.m. Eastern Time. The ongoing geopolitical tensions in the Middle East have driven energy prices higher and reinforced the greenback's role as a primary safe-haven asset.

“No one knows whether the deadline is another bout of maximalist pressure from the White House, but until there is news of a ceasefire, or perhaps a prolonged postponement of the current deadline, the dollar is likely to stay bid.”