LONDON, May 4 (Reuters) - The dollar strengthened while European shares and bond prices fell on Monday after Iran's Fars News agency reported that two missiles hit a U.S. warship when it tried to pass through the Strait of Hormuz.
The dollar index , which measures the currency against six peers, rose 0.3% to 98.542.
The pan-European STOXX 600 (.STOXX), index was last down 0.9%, while the blue-chip Euro STOXX 50 (.STOXX50E), was 1.7% lower.
Germany's 10-year bond yield , the benchmark for the euro zone bloc, was last up 5 basis points at 3.082%. Bond yields move inversely with prices.
Reporting by Samuel Indyk; Editing by Dhara Ranasinghe
