The dollar strengthened on Monday as escalation of hostilities between the US and Iran is boosting crude oil prices, which raises inflation expectations that could prompt the Fed to tighten monetary policy, a supportive factor for the dollar. Higher crude oil prices on Monday are negative for the Eurozone economy and the euro, as Europe imports most of its energy. The yen fell to a 1-week low against the dollar on Monday amid dollar strength. Also, higher crude oil prices on Monday pressured the yen, as they are bearish for the Japanese economy and the yen, as Japan imports more than 90% of its energy. In addition, higher T-note yields on Monday were bearish for the yen.