Dollar Climbs Amid Iran Tensions, Rate Hike Speculation

The US dollar strengthened against several major currencies on Friday as investors awaited the release of jobs data and assessed the potential for a September interest rate hike. The greenback rose to 158.505 yen in Asian morning trading, building on Thursday's gains.

This upward momentum is partly due to increased tensions between the US and Iran over control of the Strait of Hormuz, a key trade route for energy supplies. A proposed deal between Iran and Oman to help end the conflict could give Tehran control over inbound traffic through the strait, but this development has yet to be officially confirmed.

The dollar's appeal as a safe-haven currency was also boosted by higher Treasury yields, with investors anticipating a potential September interest rate hike. According to a Financial Times report, Federal Reserve Chair Kevin Warsh is open to raising rates if inflation data is strong. However, economists expect the Fed to wait until December before starting a modest tightening cycle.