The U.S. Dollar Index rose 0.1% to 100.49 on Tuesday after touching 100.667, its strongest level in seven weeks, before retreating as crude oil and European natural gas prices eased. The dollar had gained more than 1% the previous week after the Federal Reserve delivered a quarter-point rate increase and indicated further tightening could follow. CME FedWatch Tool data put the probability of another quarter-point increase at the Federal Reserve's October meeting at 55%. Energy prices initially supported the dollar because the United States is a net petroleum exporter, while market turbulence also encouraged safe-haven flows. Momentum shifted after Kyodo News reported that Iran had proposed reopening the Strait of Hormuz within one week if the United States reduced its military presence in the area. U.S. President Donald Trump indicated openness to possible direct talks with Iranian President Masoud Pezeshkian during the UN General Assembly this week. A First Squawk post on September 22, 2026, citing a senior Iranian government official, said Iran would open the blocked strait within seven days if demands including the lifting of a U.S. military blockade of Iranian ports were accepted. The yen fell 0.33% to 157.69 per dollar for a third straight session, despite the Bank of Japan raising its policy rate by 25 basis points to 1.25% the previous week. Thin Tokyo liquidity during public holidays amplified market moves, while a Nikkei report that the Bank of Japan had conducted formal rate checks with currency desks fueled intervention speculation. Japan holds about $1 trillion in foreign currency reserves. The euro slipped to $1.1456 and the pound to $1.3364. The Australian dollar was unchanged at $0.7123 after comments from Reserve Bank of Australia Governor Michele Bullock, with markets pricing a 90% chance of an increase at next week's meeting. The New Zealand dollar rose to $0.5735 after Reserve Bank of New Zealand Governor Anna Breman said higher petroleum prices would probably push inflation projections moderately higher. Traders are monitoring UN General Assembly developments and possible Iran-U.S. engagement for effects on petroleum prices and the dollar.