<ul>
<li>Dollar steady as U.S. blockade of Iranian ships raises supply risks</li>
<li>Trump says Iran is in touch with U.S., wants to make a deal</li>
<li>BOJ rate hike odds fall as Iran conflict clouds economic outlook</li>
</ul>
By Satoshi Sugiyama
TOKYO, April 14 (Reuters) - The dollar was largely steady on Tuesday as investors weighed supply risks stemming from a U.S. blockade of Iranian ships in the Strait of Hormuz against the prospect of continued dialogue between Washington and Tehran that could lead to a breakthrough.
The dollar index (=USD) , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.04% to 98.38, with the euro (EUR=) up 0.03% at $1.1761.
The yen (JPY=) strengthened 0.08% against the greenback to 159.3 per dollar. Sterling (GBP=) strengthened 0.03% to $1.3508.
“Expectations that the negotiations will continue are helping to stem the worsening of sentiment in financial markets,” Terumasa Kawakami, analyst at Mitsubishi UFJ Bank, said in a note. U.S. President Donald Trump said the U.S. military began a blockade of ships leaving Iran’s ports on Monday, while Tehran threatened to retaliate against its Gulf neighbours’ ports after weekend talks in Pakistan on ending the war broke down. Reuters reported negotiations between Washington and Tehran were still alive despite a tense weekend meeting in Islamabad. Trump said on Monday Iran had been in touch and wanted to make a deal while U.S. Vice President JD Vance said in an interview the U.S. expects Iran will make progress on opening the Strait of Hormuz.
The blockade will test the durability of the fragile ceasefire agreed last week and threatens to push the dollar back up if that unravels, Carol Kong, currency strategist at Commonwealth Bank of Australia, said in a note. U.S. crude futures (CLc1) were down more than $2 in early Asian trade at $96.99 a barrel. Meanwhile, chances of an interest rate hike this month by the Bank of Japan, once seen as a strong possibility, have receded as fading hopes for an end to the Iran war keep markets volatile and muddy the economic outlook, sources told Reuters.
Interest rate swaps on Monday indicated a 40% chance of a BOJ rate hike this month, down from 57% from Friday, according to Tokyo Tanshi data.
“We’re very much of the view that if the BOJ decides to stand pat at the end of April, then the risks are that the dollar-yen exchange rate is going to punch up through 160 (yen against the dollar),” said Ray Attrill, head of forex strategy at National Australia Bank, in a podcast.
The 160-yen-per-dollar level is a psychologically important threshold that many market participants believe increases the likelihood of currency intervention. BOJ Governor Kazuo Ueda on Monday stressed the need for vigilance against fallout from the Iran war in explaining the outlook for monetary policy, rather than sticking to the central bank’s script pledging to keep raising interest rates.
The Australian dollar (AUD=) weakened 0.04% versus the greenback to $0.7091. New Zealand’s kiwi (NZD=)
strengthened 0.03% versus the greenback to $0.5868.
In cryptocurrencies, bitcoin (BTC=) gained 1.70% to $74,438.67. Ethereum (ETH=) rose 5.32% to $2,373.32.

The off-table confrontation has escalated! Iran's Foreign Minister presented ceasefire conditions and announced a comprehensive management plan for the Strait of Hormuz. Trump, in turn, decisively canceled his trip to Pakistan and maintained the blockade. Will this "power versus power" contest ignite war or lead to a turning point? Feel free to share your views in the comments section.

The off-table confrontation has escalated! Iran's Foreign Minister presented ceasefire conditions and announced a comprehensive management plan for the Strait of Hormuz. Trump, in turn, decisively canceled his trip to Pakistan and maintained the blockade. Will this "power versus power" contest ignite war or lead to a turning point? Feel free to share your views in the comments section.

With neither side willing to back down, is there any hope for a second round of negotiations?

MARA

COIN

BITS

- The dollar remained stable as investors assessed supply risks from a U.S. blockade of Iranian ships while considering potential diplomatic progress between the U.S. and Iran.  
- U.S. President Trump indicated that Iran expressed interest in negotiations, amidst concerns that the blockade could disrupt the fragile ceasefire and affect currency markets.  
- Meanwhile, expectations for a Bank of Japan interest rate hike decreased due to uncertainties related to the Iran conflict, influencing currency valuation and market volatility.

Reuters

Mara

Coinbase

Global X Blockchain & Bitcoin Strategy ETF

Grayscale Bitcoin Mini Trust ETF

Riot Platforms

Grayscale Bitcoin Trust BTC - ETF

Bitwise Ethereum ETF

Proshares Ether Strategy ETF

Bitwise Bitcoin ETF

Amplify Transform Data Sharing ETF

iShares Bitcoin Trust ETF

Franklin Ethereum ETF

Global X Bitcoin Covered Call ETF

Pro Ultr Yen

Fidelity Ethereum Fund

Grayscale Bitcoin Adopters ETF

Fidelity Wise Origin Bitcoin Fund - ETF

21Shares Ethereum ETF

Grayscale Ethereum Mini Staking ETF

GraniteShares 2x Long MARA Daily ETF

ARK 21Shares Bitcoin ETF

CoinShares Bitcoin ETF

Leverage Shares 2X Long COIN Daily ETF

Valkyrie Bitcoin and Ether Strategy ETF

Currencyshares JPY Trust

WisdomTree Bitcoin Fund

Invesco Db Dlr Idx Bearish ETF

Franklin Bitcoin ETF

ProShares Bitcoin Strategy ETF

GraniteShares 2x Long COIN Daily ETF

IShares Ethereum Trust ETF

Wtree Bbg Usd Bull

VanEck Ethereum ETF

Invesco DB US Dollar Index Bullish Fund

VanEck Bitcoin ETF

Pro Ultrshrt Yen

Global X Bitcoin Trend Strategy ETF

Invesco Galaxy Bitcoin ETF

FOREX-Dollar steady as US blocks Iranian ships, talks continue