FOREX-Dollar wavers amid renewed Iran attacks, yen slides on pensions doubts

"The dollar was obviously the big winner from the war last time. But it's starting from a pretty different point this time, having strengthened quite a lot and there already having been a fairly lasting repricing of the Fed outlook," said Thomas Mathews, head of markets for Asia Pacific at Capital Economics in Wellington.

"It's not clear to me the greenback would gain as much this time if the situation continued to worsen, which I think is probably reflected in trade so far."

Fed funds futures are pricing an implied 50% probability of two or more rate hikes by the time of the U.S. central bank's December meeting, up slightly from Friday, according to the CME Group's FedWatch tool.

Inflation risks are likely to remain in focus with the release of U.S. CPI data on Tuesday, PPI gauges the following day, and Fed Chair Kevin Warsh's testimony before the House and Senate, Westpac analysts wrote in a research report.