Dollar Gains Ahead of US Inflation Data Amid Ongoing Global Tensions

The US dollar firmed up in Asian trade on August 12 as markets waited for US inflation data to gauge the Federal Reserve's next move. The greenback received a gentle boost from renewed attacks on shipping in critical waterways, but traders remain uncertain about the Fed's intentions.

According to ING analysts, there is still a path ahead for easing inflation, assuming oil prices remain contained and the Strait of Hormuz reopens. However, some experts warn that a softer-than-expected inflation report could lead speculators to trim their long USD positions against other currencies.

The US dollar index rose 0.1% to 99.89, while oil prices edged up in Asian trade, with Brent crude increasing by 0.9% to $89.69 a barrel.