Dollar Stalls as Oil Price Surge Fails to Boost Rate Hike Bets

The US dollar struggled to rally despite higher interest rates and rising oil prices, ending Wednesday unchanged around 98.8.

Brent crude rose above $100 a barrel, pushing the 10-year Treasury yield to 4.83%, its highest close since October 2023.

However, the dollar's subdued response suggests traders remain unconvinced the Federal Reserve will raise rates next week, despite markets assigning a 60% chance to a hike.

The European Central Bank decision on Thursday adds another layer of uncertainty, with a hawkish increase potentially strengthening the euro and weighing on the US dollar index (DXY).