Forex
Dollar Flat as Tensions with Iran Drive Up Oil Prices
The US dollar was flat against major currencies on Monday due to ongoing tensions between the US and Iran, which pushed oil prices higher and boosted yields. Brent crude futures rose nearly 1% to settle at $105.28 a barrel after President Trump rejected an Iranian proposal to reopen the Strait of Hormuz.
US Treasury yields remain above 5%, but the dollar's sentiment is under pressure due to the protracted Middle East conflict. The euro hovered near a two-month low against the dollar, while sterling remained close to a three-month low.
Marc Chandler, chief market strategist at Bannockburn Forex, said that the US rejecting the Iranian offer and oil prices jumping pushed upward pressure on US yields, lifting the dollar broadly.