The dollar index traded around 99.6 on Monday after rising sharply in the previous session, as hawkish remarks from Federal Reserve Chair Kevin Warsh led traders to increase bets on an imminent interest rate hike. In his Jackson Hole address on Friday, Warsh warned that inflation is not slowing meaningfully and reaffirmed that policymakers remain committed to returning inflation to their 2% target. Markets are now pricing in around a 57% chance that the Fed will raise rates by 25 basis points in September, up sharply from about 40% a week ago. A surprise upward revision to the University of Michigan’s consumer sentiment index also provided support for the dollar. Investors now turn their attention to Friday’s August jobs report for greater clarity on the outlook for US monetary policy. Elsewhere, oil prices jumped after the US military targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz, boosting safe-haven demand for the greenback.