Dollar Gains Amid Rising Oil Prices and Euro Falls After ECB Rate Hike

The US dollar regained some lost ground against major currencies on Thursday, driven by rising oil prices and bond yields. The euro slid to $1.1612 against the dollar as investors worried about the economic impact of future interest rate hikes from the European Central Bank.

The ECB raised interest rates for the second time this year to combat inflation, which is being fueled by tensions in Iran and other global events. This move has sparked concerns that future rate hikes could have negative consequences on the economy.

Eugene Epstein of Moneycorp noted that US producer prices are bolstering expectations of a Federal Reserve rate hike, further supporting the dollar's gains. Meanwhile, oil prices surged due to geopolitical tensions in Yemen and threats to Red Sea shipping.