US dollar holds near two-month high as oil prices surge after Trump rejects Iran peace deal

On Monday, September 28, 2026, the US dollar remained near a two-month high as oil prices climbed over 3% after President Donald Trump rejected a peace deal with Iran. The dollar index was at 101.16, with the euro near a two-month low and sterling close to a three-month low. Rising energy costs and strong US economic data fueled expectations of further Federal Reserve rate hikes. The yen strengthened after Japan and the US reaffirmed cooperation on currency issues. Australia's central bank was expected to raise interest rates the next day. Markets awaited US inflation and jobs data later in the week.