$Dollar Index Hits Two-Month High Amid Iran Conflict Optimism

The US dollar rose in uneven trading on Tuesday, oscillating between gains and losses after hitting a two-month high. Oil prices settled down about 1% due to a 'very good' meeting between US officials and the Iranian delegation.

US President Donald Trump's statement that he thought the US would reach a deal with Iran after the midterm elections in early November pushed oil and the dollar higher, according to Juan Perez, senior director of trading at Monex USA. This optimism was dented by Trump's subsequent statement that markets were 'all about why is there so much inflation?'

The dollar index hit a two-month high of 100.70 on Tuesday, its highest since July 30. The ongoing US-Israeli war on Iran had sent oil prices higher and fanned inflation worries, prompting rate hikes from several central banks in recent days.