Dollar Recovers Amid Oil Price Surge, Ahead of Crucial Inflation Data

The US dollar strengthened slightly on August 10 after falling to its lowest level in two months against major currencies, supported by rising oil prices and uncertainty over the situation in the Middle East.

Oil prices rose with Brent futures gaining 1.4% and holding near $85 per barrel due to uncertainty surrounding the Strait of Hormuz, where Iran is negotiating with Oman on establishing new maritime routes.

The market is awaiting US inflation data, which could affect expectations for future Federal Reserve decisions, with traders lowering their estimates of the likelihood of a rate hike in September from 67% to around 44%.