Dollar Edges Higher as Markets Await US Inflation Data

The dollar gained ground on Wednesday due to renewed tensions in the Gulf region and investors' focus on upcoming US economic data for clues on the Federal Reserve's policy trajectory.

Oil prices rose after separate attacks on shipping by the United States and Yemen's Iran-aligned Houthis, with Tehran stating that the Strait of Hormuz would remain closed unless Washington accepts its conditions.

Economists expect Friday's US inflation data to show a pick-up in inflation last month, following a decline in June when oil prices fell due to hopes for an Iran peace deal.