The dollar held near a two-month high Monday, with its index at 101.15, as the US-Iran standoff lifted Brent crude futures above $106 a barrel; energy-supply risks heightened inflation concerns, and markets saw a 65% chance of a Fed hike at October’s end.
Brent futures rose more than 1% after President Donald Trump rejected a peace deal with Iran aimed at resolving the conflict and reopening the Strait of Hormuz. The dollar index was on track for a 1.7% gain in September, its best month since June.
The euro and sterling each fell 0.1% against the dollar. US PCE inflation data due Wednesday and non-farm payrolls Friday were both expected to be consistent with further policy tightening. Australia’s central bank was expected to raise its rate by 25 basis points to 4.60% on Tuesday, potentially the final increase in its tightening cycle.
