Dollar Rises as ECB Hikes Rates Amid Oil Price Volatility
The dollar rose against major currencies on Thursday after the European Central Bank (ECB) delivered an expected interest rate increase of 25 basis points. The euro fell immediately after the decision and was last down 0.03% against the dollar at $1.163.
Eugene Epstein, head of structured products North America at Moneycorp, attributed the dollar's gains to U.S. producer prices data, which came in line with market expectations and boosted the chances of a Federal Reserve rate hike next week.
The Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing a threat to Red Sea traffic and contributing to rising oil prices. Brent crude futures rose 5% to $106.56 a barrel, but the dollar index rose 0.15% to 98.93, snapping three straight sessions of losses.