The US Dollar Index is showing an upward trend, currently positioned around 98.30 during the Asian session on Monday. The second round of negotiations with the US has been dismissed by Iran. Market participants are anticipating the release of the US March Retail Sales data later on Tuesday. The US Dollar Index, an index of the value of the US Dollar measured against a basket of six world currencies, currently trades near 98.30 during the Asian trading hours on Monday. The DXY experiences slight increases amid escalating US-Iran tensions.

Esmail Baghaei, the spokesman for Iran’s Foreign Ministry, stated that the US blockade of Iran’s ports and coastline constitutes an act of aggression that breaches the ceasefire. On Sunday, Iran announced its decision not to participate in the second round of discussions with the US. US President Donald Trump has directed US negotiators to head to Pakistan shortly before the ceasefire in the Middle East is set to expire on April 22. Uncertain prospects for a peace agreement in the Middle East have prompted investors to seek refuge in safe haven currencies like the US Dollar.

“The key is still the Strait of Hormuz for many, and hopes that we could see the U.S. and Iran sit down at the negotiating table before the ceasefire ends now seem remote,” stated Nick Twidale. Later on Tuesday, the US Retail Sales report will be the focal point of attention. Retail Sales is anticipated to increase by 1.3% month-over-month in March, up from 0.6% in February. However, in the event of a softer than expected inflation outcome, this could lead to a decline in the DXY in the near term.