Dollar Rises Amid Middle East Conflict, Fed Rate Hike Looms
The US dollar rose across the board on Monday as investors sought safe-haven assets due to the ongoing conflict in the Middle East. The escalating tensions pushed up oil prices, with Brent crude reaching $109.8 a barrel before paring gains to trade at $105.61.
The US dollar index, which tracks the currency against six major peers, was last up 0.3% at 99.41, its highest since September 2. The euro fell to a one-month low of $1.153 and was last down 0.2%, while the British pound fell 0.2% to $1.3512.
The Federal Reserve's first interest-rate hike in over two years is expected on Wednesday, with markets pointing to a roughly 90% chance of a rate hike, up from around 60% a week ago. Money markets have been increasingly convinced that the Fed will respond to the jump in energy prices and underlying inflation.