Dollar Rises as Oil Gains

2026-09-28 01:29 By Jam Kaimo Samonte 1 min. read

The dollar index climbed to above 101.2 on Monday, remaining near two-month highs as rising oil prices strengthened expectations for further Federal Reserve tightening to contain inflation and increased safe-haven demand for the greenback.

Oil prices advanced after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, while Tehran said it would not ease its conditions for reopening the vital waterway.

On the monetary policy front, several Fed officials last week cited resilient economic growth and a strong labor market as reasons additional rate hikes could be necessary.

Cleveland Fed President Beth Hammack said these factors, alongside concerns over government debt, are contributing to higher long-term Treasury yields.

Investors now await the Fed’s preferred inflation gauge and key US employment data this week for additional clues on the outlook for monetary policy.



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