The dollar rose against most other major currencies, as the renewed war in Iran fueled inflation fears and increased the likelihood of central banks raising interest rates.
اضافة اعلان
Against the Japanese currency, the dollar gained 0.1% to 161.92 yen. The euro fell 0.1% to $1.1403, and the British pound similarly declined 0.1% to $1.3383.
The Australian dollar dropped 0.1% to $0.6942, while the New Zealand dollar eased 0.1% to $0.5757.
The war in Iran reignited over the weekend. Tehran targeted Gulf nations on Sunday and announced it had once again closed the vital Strait of Hormuz, while the United States announced it had launched strikes against Iran.
Oil prices jumped as trading resumed in Asia, with Brent crude futures rising 3.3% to reach $78.49 per barrel.
"Following the escalation of tensions late last week and over this weekend, the dollar moved accordingly, with the price of crude oil being the primary driver," said Tony Sycamore, market analyst at IG in Sydney.
He added, "This once again raises fears that if energy prices rise from this level, we might start to see interest rate hikes being brought forward."
Traders lean by a simple majority toward expectations that the US Federal Reserve will raise interest rates twice by the end of the year.
According to the CME FedWatch Tool, US interest rate futures indicate a 52.1% probability of two or more rate hikes by the time of the Fed's December meeting, compared to a 47.6% probability on Friday.
The dollar index, which measures the performance of the US currency against a basket of six currencies, stabilized at 101.07 after rising by as much as 0.2% from Friday's closing level, hitting its highest point since July 8.
In cryptocurrencies, Bitcoin fell 0.6% to $63,770.42, while Ether dropped 1.1% to $1,801.28.
Reuters
