The U.S. dollar held onto its gains near a nearly two-week high,The dollar approached a two-week high on Wednesday, supported by renewed military escalation in the Middle East and rising oil prices, which reignited inflation fears and boosted U.S. Treasury yields.
The dollar index rose 0.11% to 99.79, hitting its highest level since August 17, while the euro fell 0.13% to $1.1577. Similarly, the British pound fell to $1.3503, and the Australian dollar fell to $0.7141.
The dollar’s rise coincided with a 1.15% increase in Brent crude to $95.74 per barrel and a 0.85% rise in U.S. crude to $91.05. These gains reinforced market concerns about persistent inflationary pressures.
Conversely, markets raised their estimates of the likelihood that the Federal Reserve will raise interest rates in September to 68%, compared to about 40% a week ago. The yield on 10-year U.S. Treasury bonds also rose to 4.81%.
Meanwhile, the Japanese yen fell to 160.28 yen per dollar, despite expectations that the Bank of Japan would raise interest rates. Similarly, the New Zealand dollar fell 0.8% to $0.5844, after markets viewed the decision to raise interest rates as less hawkish than expected.
As for cryptocurrencies, Bitcoin fell to $77,242.62, and Ether dropped to $2,407.74.
Read also:
