Dollar Holds Near Two-Month High on Iran Tensions

The dollar remained near a two-month high on Monday as the U.S.-Iran standoff pushed oil prices higher, increasing inflation concerns and strengthening expectations that the Federal Reserve may tighten policy. Market snapshots showed modest moves in the dollar and mixed performance among the euro and pound, while the dollar index remained on track for its strongest monthly gain since June. Investors are watching U.S. inflation and jobs data, along with economic releases from China, Japan and the euro zone, for clues about interest-rate decisions; markets put the chance of a Fed hike at its next meeting at 65%. An OCBC strategist said continued energy tensions could drive a further near-term dollar rise, while the bank expects a moderate rally into year-end.