The dollar held near a two-month high after overnight gains as fresh Iran–Israel exchanges — the first direct strikes since a US-mediated ceasefire in early April — pushed safe-haven flows. Markets are awaiting Wednesday’s US inflation print, a key input for pricing the Fed’s June rate decision. Deutsche Bank analysts said the case for hikes has looked stronger than for cuts for some time, and last Friday’s stronger-than-expected nonfarm payrolls reinforced that view.