The U.S. dollar strengthened on Monday as renewed military exchanges between the United States and Iran increased investor demand for safe-haven assets, while oil prices also climbed amid heightened geopolitical tensions.
According to a Reuters report, the U.S. Dollar Index rose 0.1% to 101.13, after earlier touching its highest level since July 8.
The latest gains followed a weekend of escalating hostilities between Washington and Tehran. Iranian forces launched strikes on U.S. facilities in Gulf states on Sunday and announced the renewed closure of the strategic Strait of Hormuz, a critical global shipping route for oil exports.
The Japanese yen also weakened against the dollar, with the U.S. currency rising 0.2% to 162.075 yen.
Elsewhere in the currency market, the euro slipped 0.1% to $1.1397, while the British pound fell 0.2% to $1.3374.
Commodity-linked currencies also came under pressure, with the Australian dollar declining 0.3% to $0.6928, while the New Zealand dollar eased 0.1% to $0.5757.
Meanwhile, oil prices surged in Asian trading as concerns over potential disruptions to global crude supplies intensified. Brent crude futures climbed 4.1% to $79.11 per barrel, reflecting market fears that escalating tensions in the Middle East could affect energy exports through the Strait of Hormuz.
