Dollar Recovers Amid Oil Price Surge, Euro Holds Firm
The US dollar recovered some of its losses on Thursday, September 10, as oil prices surged to $102.72 a barrel due to reduced energy flows from the Gulf after attacks by Iran and the United States.
Global bond yields also rose, pushing inflation worries ahead of the European winter, with prices for refined fuels like heating oil and natural gas increasing sharply.
The European Central Bank is expected to raise eurozone rates for a second time since the war began in late February, but this has done little to boost demand for safe-haven dollars.
According to Richard Franulovich, head of FX strategy at Westpac Institutional Bank, 'There's a dynamic there where ultimately, safe-haven hedge policy is a dollar. It would be expected to have traded firmer, but it hasn’t happened.'