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We study the Dunkl oscillator in two dimensions by the su(1,1) algebraic method. We apply the Schrödinger factorization to the radial Hamiltonian of the Dunkl oscillator to find the su(1,1) Lie algebra generators. The energy spectrum is found by using the theory of unitary irreducible representations. By solving analytically the Schrödinger equation, we construct the Sturmian basis for the unitary irreducible representations of the su(1,1) Lie algebra. We construct the SU(1,1) Perelomov radial coherent states for this problem and compute their time evolution.