The dollar index edged up to 101 on Monday, remaining close to the levels seen throughout July, as investors assessed developments in the Middle East while evaluating the outlook for US monetary policy. Fresh military exchanges between the US and Iran, along with conflicting reports over whether the Strait of Hormuz remains open to shipping, pushed oil prices higher. Markets are also awaiting this week's US CPI and PPI reports for further insight into inflation trends, as well as Fed Chair Warsh's testimony before Congress for additional clues on the central bank's policy path. Traders are currently pricing in at least one Fed interest rate hike this year, with the probability of a September increase hovering around 71%. The dollar weakened against the euro but strengthened against the yen, as the Japanese currency came under pressure following a Reuters report that Japan has no immediate plans to alter the asset allocation of its state pension funds.