Dollar flat as US-Iran stand-off lifts oil and yields
TLT•The dollar index was flat at 101.19 on Monday as the US-Iran stand-off lifted oil prices and Treasury yields. Brent crude rose more than 3% to above $107 a barrel.
1. Oil and yields rise
The dollar was flat against major currencies as continued US-Iran frictions pushed oil prices higher and a Treasury market selloff resumed, boosting yields. Brent crude futures climbed more than 3% to surpass $107 a barrel after President Donald Trump rejected a peace deal with Iran. The euro was flat at $1.1383, while sterling held at $1.3256.
2. Currencies and rate outlook
The yen weakened 0.12% to 157 per dollar. Japan's finance minister and US Treasury secretary reaffirmed their intention to strengthen cooperation over yen weakness, while Japan's top currency diplomat said markets should take their concerns at face value. Markets put a 73% chance on a quarter-point Fed rate hike at its October meeting; the Reserve Bank of Australia was expected to raise rates by 25 basis points to 4.60% on Tuesday.
