Dollar jumps as failed US/Iran peace talks spark fresh safe-haven push

The safe-haven dollar advanced broadly in early Asian trade on Monday, as ​peace talks between the US and Iran broke down and the US Navy ‌prepared a blockade of Iranian ports. The euro was down 0.3% at $1.1684, while the British pound fell 0.5% to $1.3398. The risk-sensitive Australian dollar was 0.6% lower at $0.7030, and the New Zealand dollar was off 0.4% at $0.5816. US President Donald Trump said ​on Sunday the US Navy would start blockading the Strait of Hormuz ​after marathon talks with Iran failed to reach a deal to ⁠end the war, jeopardizing a fragile two-week ceasefire. The US Central Command said ​US forces would begin implementing the blockade of all maritime traffic entering and exiting ​Iranian ports from 10 a.m. ET (1400 GMT) on Monday. “Early and thin FX trading this morning is showcasing a risk-off mood, with the broad-based rally in the USD in response,” analysts from Westpac ​wrote in a research note. The Hungarian forint surged after veteran nationalist leader Viktor ​Orban lost power to the upstart centre-right Tisza party in Sunday’s national election after 16 years in ‌office.