Dollar Stabilizes Near Two-Month High Amid Rate Hike Prospects

The US dollar steadied near its strongest level in two months on Wednesday due to prospects of interest rate hikes in the near term. Oil prices have eased, with Brent crude futures at $99.22 per barrel, as investors hope for a diplomatic breakthrough to end the Middle East war.

Investors are anticipating further tightening from central banks, particularly after Federal Reserve officials hinted at more hikes if inflation does not ease. The dollar index, which measures the US currency against six rivals, was at 100.56.

Kieran Williams, head of Asia FX at Intouch Capital Markets, said that 'the dollar's support from rates looks durable, but futures already price more tightening than the Fed's own projections, so the dollar now needs the data to confirm it.'