The dollar index, which measures the value of the US currency against six major currencies, rose 0.7 percent to 100.19 points, on track to gain about 2.6 percent this month.
The dollar strengthened by 0.5 percent against the European currency, so the euro exchange rate slipped to USD 1.1510, reports Hrportfolio.
The US currency also strengthened against the Japanese one, by 0.7 percent, so the price of the dollar reached 160.3 yen (JPY).
There is instability in global financial markets as the crisis in the Middle East continues, while the US-Israeli war against Iran has entered its fifth week.
This is why investors are looking for safer havens for capital, which supports the strengthening of the dollar.
US President Donald Trump said last week that Iran must agree to a deal to end the war, or US and Israeli attacks will be even more intense.
The Iranians, however, say that the American proposal to stop the fighting is "unilateral and unfair" and, with rare exceptions, continue to prevent tankers from passing through the Strait of Hormuz, which supports oil prices at elevated levels.
And higher oil prices could cause inflation to rise and slow economic growth, as central banks have already warned.
This has led to a decline in expectations that the US Fed will cut interest rates this year.
Before the US and Israeli attacks on Iran, investors expected the Fed to cut interest rates twice this year by 0.25 percentage points each, but now no interest rate cuts are expected this year.
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