Dollar Rebounds as Oil Prices Climb Amid Middle East Uncertainty

The US dollar has climbed back up from its two-month low against major currencies on Monday, thanks to rising oil prices and uncertainty over energy supply in the Middle East.

Oil prices rose by 1.4% to around $85 per barrel, as concerns about the reopening of the Strait of Hormuz persisted. The Brent oil futures market saw a significant increase due to continued uncertainty over shipping lanes and US involvement.

The dollar index, which tracks its value against six major currencies, was up by 0.06% at 99.7, regaining some ground after hitting a low since June 2. The euro was slightly weaker at $1.1551, while sterling held steady at $1.3486.

The Federal Reserve's rate path remains a key concern for investors, with many looking to this week's inflation data for clues on whether the Fed will raise interest rates in September. A consensus estimate calls for core CPI to rise by 0.2% month-on-month in July, lifting the annual rate to 2.5%.