Dollar Bounces Back Amid Ongoing Middle East Tensions
The US dollar rebounded yesterday after consolidating softer the day before. It often performs better when US interest rates rise, unlike other major currencies.
However, this strength doesn't reflect the Trump administration's successes on various fronts, including the ongoing war in the Middle East and escalated tensions with Iran.
The Strait of Hormuz saw several ships attacked today, causing oil prices to surge. October WTI reached its highest level since May earlier today, trading above $86.80.
The long-end US yields are at multi-year highs despite the Treasury's plan to boost buybacks starting this week.