Dollar Firms on Safe-Haven Demand as Iran Sanctions Escalate

The US Dollar has firmed up on safe-haven demand ahead of Tuesday's data-heavy session, driven by Treasury Secretary Scott Bessent's sharp escalation of Iran sanctions. The move lifts Gold sharply and weighs on growth-sensitive currencies like the AUD/USD.

According to the latest market updates, the US Dollar Index (DXY) reclaimed the 99.00 mark for the first time since last Wednesday's plunge. This shift in sentiment is largely attributed to safe-haven demand triggered by the Iran headlines.

The risk-off tone has also led to a decrease in growth-sensitive currencies like AUD/USD, which receded toward 0.7150 due to risk aversion and a firmer Greenback. On the other hand, Gold caught a strong safe-haven bid, climbing to just shy of the $4,650 mark per troy ounce.

The market is now looking ahead to Tuesday's packed session, which includes Germany's IFO business surveys and a heavy run of US releases. The US session will kick off with ADP's four-week average employment figure, followed by house-price data, the Conference Board's Consumer Confidence, New Home Sales, and the Richmond Fed Manufacturing Index.