US dollar set to log highest monthly gain in one-year. US-Iran war, job data in focus

The US dollar index rose to 101.36, on track for a 2.5 percent monthly gain in June, its biggest in nearly a year, driven by safe-haven demand amid escalating US-Iran tensions and hawkish Federal Reserve commentary that has reversed expectations of US rate cuts. The euro touched a 13-month low while the yen hovered near a 40-year low, and crude oil prices rose after strikes slowed energy shipping in the Strait of Hormuz, adding to inflation pressures. Investors now await US non-farm payroll and unemployment data for cues on Fed policy direction.