Dollar at week high as markets raise doubts over Iran ceasefire



April 22 (Reuters) - The dollar steadied in early Asian trade on Wednesday, as skepticism over U.S. ​President Donald Trump's announcement of an indefinite extension of a ceasefire with Iran lifted demand for the safe-haven ‌currency, pushing it to a one-week high.

On the policy front, Federal Reserve nominee Kevin Warsh's comments at a Senate confirmation hearing were interpreted as slightly hawkish, while strong retail sales data provided an upbeat view on the strength of the American economy.

The U.S. dollar index , which measures the greenback's strength against a ​basket of six currencies, was steady at 98.415, its highest level since April 13.

"There was a modest risk-off tone overnight ​amid renewed uncertainty around U.S.–Iran peace talks," analysts from Westpac wrote in a research report.

Most other ⁠currencies were unchanged after the ceasefire extension. The euro was steady at $1.1739 and was up 0.1% at $1.3519. The Australian dollar was little ​changed at $0.7152 while the New Zealand dollar held steady at $0.5894.

Against the yen , the U.S. dollar nudged down 0.1% to 159.26 yen as ​data earlier showed Japan's exports rose for a seventh straight month, defying any major impact from disruptions caused by the Gulf conflict.

The market is troubled by divisions between the hardline Islamic Revolutionary Guard Corps and more moderate factions within the Iranian government, said Tony Sycamore, market analyst at IG in ​Sydney.

"Make no mistake, this internal power struggle remains the single biggest obstacle to any lasting deal, and how it resolves remains to ​be seen," he said.

Separately, Trump said on Tuesday he will "remember" companies that do not seek refunds for payments they made on his tariffs that were ‌deemed illegal ⁠by the Supreme Court, although he did not specify how companies might benefit by abstaining from the U.S. government's new refund portal.

 


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