Dollar Gains as Oil Prices Increase Ahead of Inflation Data Releases

The US dollar rose against major currencies on Tuesday as oil prices increased ahead of this week's key inflation data releases. The jobs report last Friday showed weaker-than-expected job growth, casting doubt on a near-term Federal Reserve rate hike.

According to Fed funds futures traders, the odds of a September rate hike have dropped to 48% from 55% before the jobs data release. Analysts attribute this decrease in odds to slowing job growth and easing oil prices.

Oil prices have eased from recent highs due to hopes for a deal to end the Iran conflict. However, volatility persists as developments in the region continue to shift. The dollar index rose 0.15% to 99.76 on Tuesday, with the euro down 0.1% at $1.1546.

The Japanese yen weakened 0.75% against the greenback to 158.97 per dollar, its steepest daily decline in almost five months. Speculators slashed their bearish bets on the yen by the most in over 12 years, according to data from the Commodity Futures Trading Commission.