Dollar Stands Tall Amid Oil Price Surge and Rate Hike Expectations

The US dollar held steady near a two-week high on Wednesday as renewed hostilities in the Middle East drove oil prices higher, reviving inflation concerns and adding upward pressure on bond yields.

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

The appeal of the US dollar as a safe-haven asset has been strengthened by rising Treasury yields and growing expectations of a Federal Reserve rate hike, despite recent economic data coming in below forecasts.