Dollar drifts as US-Iran conflict intensifies, Brent hits $90

Markets continue to anticipate no change to rates at the Federal Reserve's next meeting on July 29, with Fed funds futures pricing an implied 85.6% probability of a hold, compared to a 61.5% chance a month ago, according to the CME Group's FedWatch tool.

Cleveland Fed President Beth Hammack on Friday added her voice to a growing chorus of policymakers arguing interest rates may need to rise to beat back persistent inflation, setting up a charged debate at the Fed's next meeting and the possibility of dissents at Chair Kevin Warsh's second meeting at the helm.

In cryptocurrencies, bitcoin BTC= was up 0.2% at $64,637.89, while ether ETH= was 0.4% higher at $1,872.71.

The dollar pulled back in Asian trading on Monday as investor confidence recovered, snapping a three-day winning streak that began after the conflict in the Middle East escalated last week and lowered risk appetite.