Dollar Soars on Rising Rate Hike Odds and Geopolitical Tensions

The US dollar has reached a two-week high due to signals from Federal Reserve Chair Kevin Warsh that the central bank is open to raising interest rates if inflation persists.

Markets now estimate a 57% chance of a rate hike in September, sending two-year US Treasury note yields to a one-month high of 4.33%.

Brent crude prices have surged past $89 per barrel following reports of US military action on Iranian missile launchers near Larak Island, adding a layer of geopolitical uncertainty and prompting investors to seek safety in the dollar.