Dollar Hits Two-Month High Amid Ongoing US-Iran Tensions
The US dollar held near a two-month high on Monday as investors remained cautious about the ongoing US-Iran standoff and turned to key economic data releases this week.
The dollar was around 101.12, up 0.2%, with a chance of a roughly 1.7% gain in September, its strongest monthly performance since June. The pair rose 0.3% to 157.78.
The oil price surge, driven by the US President Donald Trump's rejection of an agreement to resolve the conflict with Iran and reopen the Strait of Hormuz, has kept energy-supply risks elevated and reinforced inflation concerns. Markets are increasingly expecting the Federal Reserve to maintain a hawkish stance as higher energy costs threaten to keep inflation elevated.
The yen slipped around 0.3% to 157.7 per dollar after gaining on Friday following a call between Japan's Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent, who reaffirmed concerns about yen undervaluation and said the two countries would strengthen cooperation on the currency.