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28.09.202601:29:58UTC+00Dollar Rises as Oil Gains

The dollar index rose to around 101.1 on Monday, hovering near a two-month high as climbing oil prices reinforced expectations of further Federal Reserve tightening to curb inflation and boosted safe-haven demand for the greenback. Oil extended gains after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, while Tehran reiterated it would not soften its conditions for reopening the strategic waterway.

On the monetary policy front, several Fed officials last week pointed to resilient economic growth and a robust labor market as reasons why additional rate hikes may still be warranted. Cleveland Fed President Beth Hammack noted that these factors, together with concerns over rising government debt, are helping to push long-term Treasury yields higher. Investors are now looking ahead to the Fed’s preferred inflation gauge and key US labor market data due this week for further signals on the future path of monetary policy.

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