US Dollar Index Surges to 2-Month High Amid Iran Tensions

The US dollar index has risen to 101.15, up 1.7% in September, driven by rising energy prices and increased expectations of tighter monetary policy from the Federal Reserve.

Traders are closely watching the U.S.-Iran standoff, which has pushed Brent crude futures over $106 a barrel, fueling inflation concerns and supporting the dollar.

According to CME FedWatch, markets currently price in a 65% probability of an October Fed rate hike, as investors await key US data releases this week, including the PCE Index and non-farm payrolls.