Dollar holds near two-month high as Middle East tensions linger

WASHINGTON, United States — The dollar held near a two-month high on Tuesday as uncertainty in the Middle East drove investors toward the currency as a safe-haven asset, with the greenback gaining against most major currencies. Iran and Israel halted mutual attacks on Monday after a call from U.S. President Donald Trump, but Tehran threatened to resume strikes if Israel continues targeting Hezbollah in Lebanon. Efforts by Washington to secure a lasting agreement with Iran have shown limited progress after more than three months of hostilities. Oil prices rose amid the uncertainty, supporting demand for the dollar. The dollar index steadied at 100.03, not far from Monday's two-month peak of 100.21. In Asian trading, the euro slipped to $1.1528 and sterling fell to $1.3335, with both currencies having touched their lowest levels in two months during the previous session. The Australian dollar fell 0.1 percent to $0.7039 and the New Zealand dollar declined to $0.5804. The yen continued to fluctuate around 160.295, near the 160 level traders watch for potential official intervention. NAB analyst Rodrigo Catril said limited progress toward a peace agreement or ceasefire over the past two weeks had supported the dollar, which also drew strength from strong U.S. economic data.