Dollar Hits Two-Month High Amid Rising Oil Prices

The US dollar has reached near two-month highs as oil prices surge amid rising tensions between the United States and Iran. The euro and British pound both fell against the dollar, with the European currency hitting $1.1379.

Rising energy supply risks and strong US economic fundamentals have increased inflation concerns and led traders to price in a more hawkish path for the Federal Reserve. Higher long-term US Treasury yields have also supported the dollar.

According to Sim Moh Siong, a foreign-exchange strategist at OCBC, 'the dollar could exceed its short-term expected levels if tensions in energy markets persist and inflation risks increase.'