Dollar Holds Firm Amid Middle East Tensions

The US dollar held firm on Wednesday as renewed hostilities in the Middle East pushed oil prices higher and revived inflation concerns.

Rising Treasury yields and growing expectations of a Federal Reserve rate hike have reinforced the currency's safe-haven appeal, even as recent economic data came in below forecasts.

Oil prices rose nearly 1% in early trade on Wednesday, with Brent futures up 0.92% at $95.52 a barrel and US West Texas Intermediate (WTI) crude 0.89% firmer at $91.02.

Kumiko Ishikawa, a senior FX analyst at Sony Financial Group, said 'Continued vigilance is needed over the situation in the Middle East today.'