Ammon News - The dollar jumped against other major currencies in thin trading late on Sunday, as investors sought the relative safety of the U.S. currency after marathon talks between ​Washington and Tehran failed to yield a peace deal, plunging markets into a seventh ‌week of uncertainty.

President Donald Trump on Sunday said the U.S. Navy would start blockading the Strait of Hormuz, a choke point for 20% of the world's daily energy supplies that Iran effectively closed since the war started in ​late February. That has driven oil prices up by over 30% and fuelled fears of ​a widespread surge in inflation.

The dollar , which has acted as a safe haven ⁠given the limited exposure of the United States to imported energy-price inflation, rallied as Asian markets ​opened for trading, leaving the euro down 0.53% at $1.1663 and gaining 0.1% against the Japanese yen to ​trade at 159.43.

More risk-sensitive currencies such as the Australian dollar ​and sterling came under heavy ​pressure, falling 1.1% ⁠and 0.5%, respectively.

Reuters