Dollar Stabilizes Near Two-Month High Ahead of Key US Data
The US dollar hovered near a two-month high on Tuesday due to rising oil prices and Treasury yields. This trend, however, was tempered by traders' anticipation of upcoming US inflation and jobs data for clues on Federal Reserve policy.
The euro traded near its weakest level in three months at $1.1367 after the European Central Bank's chief signalled measured steps to quell inflation. Sterling remained steady at $1.3248, also not far from a three-month trough.
The dollar index was slightly higher at 101.2 and on track for a 1.8% advance this month, its best performance since June. Oil prices crept back up with Brent crude futures last near $106 a barrel as markets doubted that renewed efforts to end the Iran war would get anywhere after US President Donald Trump rejected Tehran's ceasefire proposal.