Dollar firm near 18-month highs, as Gulf unrest, US inflation keep investors on edge

The US dollar reached near 18-month highs on Monday, as conflicts in the Middle East and US inflation concerns cast a shadow over investors' outlook. The dollar index traded around 102.16, close to the 18-month high mark. Rising oil prices, following additional strikes by Iran-backed Houthis against Saudi Arabia, added to the dollar's upward momentum.

Additionally, two tankers were targeted in attacks over the weekend. Brent crude futures fell 0.5% to $104 a barrel, down nearly 45% from pre-war levels. Analysts suggest that investors are flocking to the dollar due to geopolitical uncertainties, while traders are cautiously anticipating the upcoming US inflation data, which could influence the Federal Reserve's interest rate decisions.