Dollar Holds Near Two-Week High as Middle East Tensions Rise

The US dollar held near its two-week high on Wednesday as hostilities in the Middle East escalated, driving oil prices higher and reviving inflation concerns.

The dollar index rose 0.11% to 99.79, its highest point since August 17, while the euro fell 0.14% to $1.1576.

Rising US Treasury yields and growing expectations of a Federal Reserve rate hike also supported the greenback's appeal as a safe-haven currency.

In contrast, the Japanese yen weakened against the dollar, despite strong support from US Treasury Secretary Scott Bessent for 'decisive' monetary steps to combat yen weakness.