Dollar Rises as Fed Hike Bets Soar on Inflation Concerns and Middle East Tensions

The US dollar continued its upward trend on Wednesday, driven by rising Treasury yields and growing expectations that the Federal Reserve will raise interest rates this month. The dollar index stood at 99.67, with the benchmark 10-year Treasury yield edging up to 4.8 percent.

Brent futures climbed 0.92 percent to $95.52 a barrel, while West Texas Intermediate crude added 0.89 percent to $91.02, amid renewed military exchanges between the US and Iran that pushed oil prices higher for a second straight session.

The New Zealand dollar tumbled after the Reserve Bank of New Zealand signaled a less aggressive tightening path than markets had anticipated, with the Kiwi slipping 0.9 percent to its weakest level since August 13.

Crypto assets also declined, with Bitcoin falling 0.07 percent to $77,376.22 and Ethereum losing 0.08 percent to $2,418.26.