Dollar rises, European stocks & bonds fall after reports of US warship being hit

The dollar strengthened while European shares and bond prices fell on Monday after Iran’s Fars News agency reported that two missiles hit a US warship when it tried to pass through the Strait of Hormuz.

The dollar index, which measures the currency against six peers, rose 0.3 percent to 98.542.

The pan-European STOXX 600 index was last down 0.9 percent, while the blue-chip Euro STOXX 50 was 1.7 percent lower.

Germany’s 10-year bond yield, the benchmark for the euro zone bloc, was last up 5 basis points at 3.082 percent. Bond yields move inversely with prices.