Dollar Pauses Near Two-Week High Amid US-Iran Escalation and Hawkish Fed

The US dollar has paused near its two-week high amid rising tensions between Washington and Tehran.

On Monday, the greenback fell 0.3% to 99.42 after a strong safe-haven demand led by the escalation of military strikes between the U.S. and Iran.

The heightened tensions sent oil prices soaring, with global benchmark Brent rising 4.9% to $90.37 per barrel.

Federal Reserve Chair Kevin Warsh's hawkish speech at Jackson Hole also contributed to the dollar's strength, as traders raised their bets on a quarter-point rate hike in September.