The Australian dollar dropped as traders focus on Trump's 48-hour ultimatum.

During the midday session in the Asian trading period, the Australian dollar fell against the US dollar as traders focused on US President Trump's 48-hour ultimatum to reopen the Strait of Hormuz issued on Saturday. The strategist at the West Pacific Bank's strategy department commented, "The upcoming week could be crucial for global markets as the US-Iran conflict may reach a critical point." They stated that Trump's ultimatum "increases the risk of escalating tensions and causing more serious damage to regional energy infrastructure." They added that the Australian dollar "has not reacted well to these events, starting the week off on the wrong foot." Data from the London Stock Exchange Group showed the Australian dollar dropping by 0.9% to $0.6962, hitting a low of $0.6958 earlier in the session, the lowest since March 9th.