Dollar Surges as Oil Prices Soar on Iran-US Tensions

The US dollar gained strength on Monday as oil prices surged due to escalating tensions between Iran and the US, which dimmed hopes for a deal to reopen the Strait of Hormuz.

Odds of a Federal Reserve rate hike at its September meeting fell from 67% to 52% after a weak jobs report on Friday, which analysts say has contributed to slower job growth and easing oil prices.

The Japanese yen weakened by nearly 0.8%, with speculators slashing their bearish bets on the currency by the most in over 12 years, according to data from the Commodity Futures Trading Commission.