The dollar index (DXY00) rallied to a 10.5-month high on Monday, finishing up by 0.40%. The dollar gained on safe-haven support on Monday amid concerns of a protracted war in Iran. President Trump told the Financial Times on Sunday that he wants to "take the oil in Iran" and could seize the export hub of Kharg Island, which would involve US ground troops and mark a major escalation of the conflict. Gains in the dollar were limited, as Monday's sharp decline in T-note yields weakened the dollar's interest-rate differentials.
The US Mar Dallas Fed manufacturing activity survey fell by -0.4 to -0.2, weaker than expectations of an increase to 2.0.
