The Dollar was on the defensive on Monday but remained near a two-month high, as the United States (US) and Iran standoff continued to push up oil prices and bond yields, while investors looked ahead to a data-packed week for further clues on inflation and Central bank policy.
The Euro was a shade weaker at $1.1386, hovering near two-month lows against the greenback and on course for a 2% decline in September.
The Dollar index, which measures the US currency against a basket of peers, eased slightly to 101.12 but was still set for a 1.7% gain this month, its best gain since June.
Oil prices climbed more than 3% on Monday with Brent crude futures last above $107 a barrel, after US President Donald Trump rejected a peace deal with Iran to resolve their conflict and reopen the Strait of Hormuz.
Energy supply risks and robust fundamentals in the US have heightened inflation concerns and prompted traders to price in a more hawkish Federal Reserve, while a relentless rise in long-end Treasury yields also supported the Dollar.
–Reuters–
