Early on Monday, the US dollar is recovering a little after a steep decline, following the drone attacks on Saudi oil facilities which drove a risk-off sentiment in financial markets. At the time of writing, the US dollar index DXY is trading at around 98.16.

The drone attack on Aramco’s oil processing facilities has sent safe havens soaring as the risk appetite reduces in times of uncertainty. Markets remain concerned about the potential fallout from the attack, with the US squarely placing the blame on Iran even as Yemen-based Houthi rebels claim responsibility for the attack.

The US dollar is also likely to trade under pressure in the coming days over expectations of a rate cut by the Federal Reserve at its upcoming meeting this week. Markets are expecting a 0.25% rate cut to be announced, after the last rate cut in July.