Dollar Hits Two-Month High as Oil Prices Ease Amid Iran Talks

The US dollar rose to its highest level in two months on Wednesday due to investors weighing the prospects of further interest rate hikes, according to Reuters.

The dollar index, which tracks the greenback against a basket of six major currencies, gained 0.16% to 100.71. The euro fell to $1.14282, its lowest level since late July, and sterling was trading at $1.3316.

Recent rate rises by central banks have supported the dollar, while the conflict involving Iran has pushed oil prices higher and raised concerns about inflation, Reuters said.

'The good news is that oil prices have moderated somewhat from the highs but the path forward remains unclear,' said Michael Wan, a currency analyst at Mitsubishi UFJ Financial Group (MUFG).