The dollar rose to its highest level in more than a week Monday morning on talk leaders at the G-8 summit in Japan will support the currency in an attempt to halt rising commodity prices.

The dollar strengthened about one-half cent versus the euro to $1.5629 and about 1 cent versus the British pound to $1.9659 in Monday morning trading. The dollar also rose about one-half yen to 107.66 versus Japan's yen.

Ian Stannard, a senior currency strategist at BNP Paribas SA (NASDAQ: BNPQY), France's largest bank, told Bloomberg News Monday that support for the dollar in the form of verbal invention continues, driven by the thesis that a stronger dollar, globally, is in everyone's interest.

Many economists agree that a falling and weak dollar has been a factor in rising commodity prices. Oil and other commodities tend to rise when the dollar falls as investors / traders seek to preserve purchasing power of the decreased value of dollar-denominated commodities by bidding their price up. However, economists differ regarding the extent of the weak dollar's commodity-inflation impact, with some arguing it is only a mild factor.

'Actions speak louder than words'

Further, economist Peter Dawson told BloggingStocks Monday, dollar bulls should not feel too emboldened by a verbal stance by the G-8.

"Actions speak louder than words, and in this case the most important actions relate to the United States," Dawson said. "The U.S. has to lower its [federal] budget deficit and get its economy growing again to produce a change in the dollar's long-term downward trend. There's been some progress regarding the U.S. trade deficit. Words by G-8 leaders won't be enough."

Monetary Policy Analysis: The dollar's move higher could also be short-circuited if the Bank of England chooses to increase short-term interest rates Thursday at 7 a.m. EDT. The consensus calls for the BOE to maintain its present 5.00% rate, but a minority of economists say a quarter-point rate hike is still possible, due to concerns about rising inflation in the United Kingdom.