Dollar Soars as Rate Hikes Loom and Iran Diplomacy Hopes Lift Oil Prices

The US dollar has steadied near its strongest level in two months as investors weigh the prospect of interest rate hikes and diplomatic efforts to end the Middle East war.

The euro is trading at $1.1446, its weakest level since late July, while sterling is buying $1.3337.

Central banks have been raising rates in response to inflation worries, with the Federal Reserve officials flagging further hikes if prices do not ease.

Oil markets are also a concern as Brent crude futures remain high at $99.22 per barrel, despite hopes for a diplomatic breakthrough at the UN General Assembly.