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Dollar rises on Iran-war jitters, pound slips as UK leader changes
The dollar index climbed 0.17% to 100.91, while the euro fell 0.23% to $1.1413 as investors balanced escalation fears against signs Washington and Tehran want diplomacy.
The U.S. dollar rose on Monday as investors watched developments around the Iran conflict, while the pound fell after markets looked ahead to Britain’s new prime minister, Andy Burnham. Reuters reported that Yemen's Iran-aligned Houthis said they were imposing a naval blockade on Saudi Arabia, widening concerns about global energy supplies and trade.
Oil prices gave back some of their earlier gains as Tehran and Washington signaled they wanted to resume diplomacy, according to the report. U.S. crude was up 0.01% at $82.50 a barrel, and Brent rose 0.08% to $88.17 a barrel after earlier reaching levels not seen in more than a month.
In FX markets, the dollar index climbed 0.17% to 100.91, while the euro was down 0.23% at $1.1413, Reuters said. The pound also weakened, slipping 0.04% to $1.3448 after earlier climbing to $1.3481 as traders awaited details of Burnham’s cabinet, especially the choice of a finance minister.
The report added that the week’s economic calendar was light and that Federal Reserve officials are in a blackout period ahead of next week’s central bank meeting. CME Fedwatch data cited by Reuters showed markets pricing only a 14.4% chance of a Fed rate hike next week, down from more than 40% a week ago, while expectations for a September hike were 65.5%.
Latest closeWTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%|Dollar index 100.71 ▲0.2%