Dollar Rises on Iran Deal Doubts and Higher Oil Prices

The US dollar is poised to end the week on a high note, driven by concerns over an Iran peace deal and rising Treasury yields. The greenback has been bolstered by rumors that the proposed agreement between Iran and Oman may give Tehran control over the Strait of Hormuz, which would be unacceptable to the US.

The dollar's safe-haven appeal has also been boosted by higher oil prices, with Brent crude trading at $83.80 per barrel after a 1.31 increase on Friday. This has sent yields on Treasuries higher, supporting the dollar even further.

Analysts point out that Federal Reserve Chair Kevin Warsh is open to a September interest rate hike, citing a Financial Times report. However, Commonwealth Bank of Australia economist Kristina Clifton expects the Fed to wait until December before starting a modest tightening cycle.