Dollar Rebounds Amid Oil Price Gains and Fed Rate Hike Uncertainty

The US dollar made gains on Monday, recovering from its lowest point in two months. The climb was partly driven by rising oil prices due to ongoing uncertainty over the Strait of Hormuz's reopening.

Oil futures saw a 1.4% increase, reaching around $85 per barrel. Brent crude has been affected by Iran's comments on a deal with Oman defining new shipping lanes, which added to the energy supply outlook's muddling.

The euro and sterling were relatively stable, with the euro trading at $1.1551 and sterling at $1.3486. The yen weakened slightly, hitting 158.30 per dollar, but remains above its multi-decade low of around 164 reached last month.

Investors are closely watching this week's inflation data for clues on the Federal Reserve's interest rate path. Job market data released last Friday showed the US economy unexpectedly shed jobs in July and revised job gains for the previous two months downward, reducing expectations for a Fed rate hike next month.