$100 Oil Fears Fuel Dollar Rally Ahead of ECB, US Inflation Data

The dollar regained some ground on Thursday ahead of key economic data releases from major economies. The EUR/USD pair dropped by 0.28% to $1.1599, while the US dollar index rose 0.34% to 99.12.

The European Central Bank (ECB) hiked interest rates for the second time this year, aiming to curb an energy-driven inflation surge triggered by the Iran war. The rate increase was in line with market expectations.

Meanwhile, oil prices continued to soar, reaching $100 per barrel and spooking investors. Rising global bond yields also contributed to the dollar's strength, which reversed some of its losses from earlier this week.