The dollar rose against most other currencies, as renewed attacks in the Middle East fueled inflation fears and increased the likelihood of central banks raising interest rates.

Against the Japanese yen, the dollar rose 0.1 percent to 161.92 yen. The euro fell 0.1 percent to $1.1403, and the British pound similarly declined 0.1 percent to $1.3383, according to Reuters.

The Australian dollar fell 0.1 percent to $0.6942, while its New Zealand counterpart dropped 0.1 percent to $0.5757.

U.S. and Iranian forces launched intensive missile and drone attacks over the weekend.

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Oil prices rose as trading resumed in Asia, with Brent crude futures gaining 3.3 percent to reach $78.49 a barrel.

"After the escalation of tensions at the end of last week and the beginning of this week, the dollar moved accordingly, and crude oil prices were the main driver," said Tony Sycamore, market analyst at IG in Sydney, to Reuters.

"This again raises concerns that if energy prices rise from this level, we may start to see earlier interest rate hikes," he added.

Traders are leaning slightly toward expectations that the Federal Reserve (U.S. central bank) will raise interest rates twice by the end of the year.

According to the CME FedWatch tool, U.S. interest rate futures indicate a 52.1 percent probability of two or more rate hikes by the time of the Fed's meeting in December, compared with a 47.6 percent probability on Friday.

The dollar index, which measures the U.S. currency against a basket of six currencies, held steady at 101.07 after rising as much as 0.2 percent from Friday's close, reaching its highest level since July 8.

As for cryptocurrencies, Bitcoin fell 0.6 percent to $63,770.42, while Ether dropped 1.1 percent to $1,801.28.

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