Dollar Holds Firm Amid Ongoing US-Iran Tensions

The US dollar held steady in New York trading on the 28th as tensions between the US and Iran pushed up oil prices, which in turn raised US Treasury yields. The dollar index remained near its highest level in roughly two months at 101.20.

The yen slipped to 157.39 per dollar, while the euro traded near a two-month low at $1.1370 and the British pound hovered near a three-month trough at $1.3250.

Crude oil prices surged after President Trump rejected Iran's ceasefire proposal, with WTI crude futures briefly climbing into the $96 range and Brent crude futures topping $106 per barrel.

US Treasury yields have remained above 5%, exerting upward pressure on the dollar. Marc Chandler, chief market strategist at Bannockburn Global Forex, noted that the US rejection of Iran's proposal sent oil prices sharply higher, lifting the dollar.