{
  "id": 10340670,
  "title": "Dollar firms as US-Iran tensions lift oil, hawkish Fed bets build",
  "url": "https://urgent.news/2026/09/28/dollar-firms-as-us-iran-tensions-lift-oil-hawkish-fed-bets-build-10340670",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-28T01:58:22.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/forex/forex-news/dollar-firms-as-us-iran-tensions-lift-oil-hawkish-fed-bets-build/articleshow/134529719.cms"
  },
  "original_language": "en",
  "account": "The US dollar gained ground on Monday, edging close to a two-month peak, as tensions between the United States and Iran fueled oil price increases and traders anticipated a data-rich week for signs of inflation and central bank actions. Simultaneously, the euro and British pound each slipped 0.1% against the dollar, reaching multi-month lows at $1.1379 and $1.3232, respectively.The dollar index, which gauges the US currency against a basket of peers, ticked higher at 101.15, on track for a 1.7% gain in September, its strongest monthly performance since June.Oil prices surged more than 1% on Monday, with Brent crude futures breaching the $106-a-barrel mark, following US President Donald Trump's rejection of a peace deal with Iran and his decision to reopen the Strait of Hormuz.Owing to heightened energy supply risks and strong fundamentals in the US, investors are pricing in a more hawkish Federal Reserve, bolstering the dollar. However, if energy market tensions persist and inflation pressures mount, the greenback might overreact in the short term, cautioned Sim Moh Siong, FX strategist at OCBC.While the bank's baseline scenario anticipates a modest dollar rally through the end of the year, the market's attention is shifting to forthcoming US data releases. The Personal Consumption Expenditures (PCE) Index is slated for release on Wednesday, while non-farm payrolls are due on Friday, both expected to be in line with further monetary tightening.Currently, there is a 65% probability of a rate hike from the Federal Reserve during the October meeting, as indicated by CME Group's FedWatch tool. Other data for the week includes China's Purchasing Managers' Index (PMI) on Wednesday ahead of the week-long National Day holiday, and Japan and euro zone Consumer Price Index (CPI) figures on Friday.The Japanese yen fell 0.3% to 157.7 per dollar. It gained on Friday after Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent spoke by phone, reaffirming their concern over yen undervaluation and their intent to bolster cooperation. The Australian dollar closed at $0.7017, down 0.07%, while the New Zealand dollar traded flat at $0.5661.The Reserve Bank of Australia is expected to raise interest rates by 25 basis points to a near 15-year high of 4.60% on Tuesday, likely the final increase in the tightening cycle. Lastly, the offshore yuan weakened to 6.7235 per dollar following Trump's and Chinese President Xi Jinping's three-day summit, which did not result in any significant public breakthroughs on various contentious issues.",
  "summary": "The dollar showed strength as investors anticipated inflation data and central bank decisions this week. Oil prices increased due to ongoing US-Iran tensions, which raised concerns about energy supply. Analysts predict potential interest rate hikes from the Federal Reserve given current inflationary pressures. The Australian dollar is also expected to see a rate increase in a near-15-year high…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Australian Dollar softens to near 0.7000 on hawkish Fed signals, RBA rate decision looms",
        "url": "https://urgent.news/2026/09/27/australian-dollar-softens-to-near-0-7000-on-hawkish-fed-signals-rba",
        "published": "2026-09-27T23:23:33.000Z"
      },
      {
        "outlet": "Investing.com",
        "title": "Dollar firms as US-Iran tensions lift oil, hawkish Fed bets build",
        "url": "https://urgent.news/2026/09/28/dollar-firms-as-us-iran-tensions-lift-oil-hawkish-fed-bets-build",
        "published": "2026-09-28T01:36:30.000Z"
      },
      {
        "outlet": "Business Recorder",
        "title": "Dollar firms as US-Iran tensions lift oil, hawkish Fed bets build",
        "url": "https://urgent.news/2026/09/28/dollar-firms-as-us-iran-tensions-lift-oil-hawkish-fed-bets-build-10352366",
        "published": "2026-09-28T03:18:08.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}