Dollar Holds Firm Amid Rising Oil Prices and Treasury Yields
The US dollar held its ground against major currencies on Monday, despite rising oil prices and Treasury yields. Brent crude futures surged over 3% to surpass $107 a barrel after US President Donald Trump rejected a peace deal with Iran.
US Treasury yields remained above 5% at multi-decade highs, but the dollar's sentiment was under pressure due to the protracted Middle East tensions, which have hampered oil-and-gas shipping through the Strait of Hormuz.
The euro and sterling were flat against the dollar, with the euro trading at $1.1383 and sterling at $1.3256.
Market strategist Marc Chandler said, 'What's happening is that you've got the US rejecting the Iranian offer and oil prices jumped, pushing upward pressure on US yields and that is what's lifting the dollar more broadly.'