The dollar rose to its highest level in two months on Wednesday as investors weighed prospects of further interest rate hikes, but easing oil prices and diplomatic efforts to end the Middle East war added uncertainty to the outlook, Reuters reported.
The dollar index, which tracks the US The dollar index, which tracks the greenback against a basket of six major currencies, gained 0.16% to 100.71. The euro fell to $1.14282, its lowest level since late July, and sterling was trading at $1.3316.
Recent rate rises and hawkish gestures by major central banks have supported the dollar, while the conflict involving Iran has pushed oil prices higher and raised concerns about inflation, Reuters said.
“The dollar’s support from rates looks durable, but futures already price more tightening than the Fed’s own projections, so the dollar now needs the data to confirm it,” said Kieran Williams, head of Asia FX at Intouch Capital Markets.
Oil prices fall on hopes of progress on diplomacy at United Nations General Assembly. Brent crude fell to $98.46 a barrel, down for a sixth session in a row, Reuters said.
“The good news is that oil prices have moderated somewhat from the highs but the path forward remains unclear,” said Michael Wan, a currency analyst at Mitsubishi UFJ Financial Group (MUFG).
