Dollar Surges Near Two-Month Highs Amid US-Iran Standoff and Energy Price Fears

The US dollar continued its upward trend on Monday, reaching near two-month highs as investors remain cautious due to the ongoing US-Iran standoff and potential for higher energy prices.

The dollar index was up 0.2% at around 101.12, putting it on track for a 1.7% gain in September, its strongest monthly performance since June.

Oil prices rose over 1% to above $106 per barrel after US President Donald Trump rejected an agreement aimed at resolving the conflict with Iran and reopening the Strait of Hormuz.

The dollar's strength has also been supported by solid US economic data and elevated longer-dated Treasury yields, which have reinforced expectations that the Federal Reserve will maintain a hawkish stance.