US dollar rebounds after U.S.-Iran talks pause over Lebanon attacks
The US dollar got a boost on Monday after peace talks between the US and Iran hit a pause, mostly because of new attacks in Lebanon.
The dollar index climbed to 99.195, bouncing back from last week's drop.
Later on, President Trump said he spoke with Hezbollah through intermediaries and secured a pledge that it would not attack Israel, which softened the dollar's surge a bit, but uncertainty still hangs over the markets.
Oil rise fuels Fed rate bets
The conflict that started in late February has kept currency markets on edge, with the dollar swinging up and down as diplomatic news changes.
The Strait of Hormuz is still closed, so oil prices are rising and inflation worries are growing, making traders expect the Federal Reserve might hike rates this year.
Everyone's watching for the next US jobs report, which could show an 85,000-job gain and 4.3% unemployment.
Meanwhile, Japan's yen is weakening as traders wait for Bank of Japan Governor Ueda's speech on June 3 for hints about policy changes.