Dollar drifts as US-Iran conflict intensifies, Brent hits $90

By Gregor Stuart Hunter

SINGAPORE, July 20 (Reuters) - The dollar pulled backmost successful Asian trading connected Monday arsenic capitalist assurance recovered, snapping a three-day winning streak that began ‌after the struggle successful the Middle East escalated past week and lowered hazard appetite.

The ‌dollar index, which measures the greenback's spot against a handbasket of six currencies, was down 0.1% astatine 100.69 aft 3 ​consecutive days of gains against astir of its planetary peers.

The euro was up 0.1% astatine $1.1444 up of the European Central Bank's gathering aboriginal this week, portion the British lb nudged 0.1% higher to $1.3463 arsenic Andy Burnham prepares to regenerate Keir Starmer arsenic premier minister.

Against the yen, the U.S. dollar was level ‌at 162.335 yen successful bladed liquidity ⁠as Japan observed the Marine Day holiday. The Australian dollar climbed 0.2% to $0.6996, portion the New Zealand dollar precocious 0.3% to $0.5858.

"Buyers are coming successful and ⁠supporting immoderate of the riskier currencies," said Fabien Yip, marketplace expert astatine IG successful Sydney. "We're seeing a spot of a rebound successful the riskier currencies similar the Aussie, portion sterling has besides strengthened a ​little bit," ​she said. "It's not truthful overmuch the dollar weakening, arsenic ​support for different currencies."

Brent crude futures ‌jumped 2.6% to $90.37 a tube aft the U.S. said connected Sunday it had begun a ninth consecutive nighttime of attacks against Iran aft earlier announcing that astatine slightest 2 U.S. subject unit were killed successful Jordan.

Against the Chinese yuan, the U.S. dollar was down 0.1% astatine 6.772 yuan successful offshore commercialized aft China kept its benchmark lending rates unchanged for a 14th consecutive period connected ‌Monday, successful enactment with marketplace expectations.

Markets proceed to expect ​no alteration to rates astatine the Federal Reserve's adjacent gathering ​on July 29, with Fed funds ​futures pricing an implied 85.6% probability of a hold, compared to a 61.5% ‌chance a period ago, according to the ​CME Group's FedWatch tool.

Cleveland Fed ​President Beth Hammack connected Friday added her dependable to a increasing chorus of policymakers arguing involvement rates whitethorn request to emergence to bushed backmost persistent inflation, mounting up a ​charged statement astatine the Fed's ‌next gathering and the anticipation of dissents astatine Chair Kevin Warsh's 2nd gathering astatine ​the helm.

In cryptocurrencies, bitcoin was up 0.2% astatine $64,637.89, portion ether was 0.4% higher astatine $1,872.71.

(Reporting ​by Gregor Stuart Hunter; Editing by Jamie Freed)