Dollar Holds Near Two-Month High on Rate Hike Expectations

The US dollar has stabilized near its strongest level in two months due to expectations of interest rate hikes by major central banks. This is despite some caution from analysts who point out that futures markets are pricing in more tightening than the Federal Reserve's own projections.

Oil prices have moderated somewhat, but remain a concern as markets await a potential diplomatic breakthrough to end the Middle East war between the US and Iran. Brent crude futures are currently at $99.22 per barrel.

Currency analysts are also watching for a meeting between US President Donald Trump and Chinese President Xi Jinping, which could impact the relationship between the two countries and influence market sentiment.