Dollar Strengthens Amid Oil Price Surge, Inflation Fears
The US dollar strengthened on Wednesday, driven by rising oil prices and increasing inflation concerns. The escalation of the Middle East conflict pushed up oil prices nearly 1%, with Brent futures reaching $95.52 a barrel and WTI crude at $91.02 a barrel.
Kumiko Ishikawa, senior foreign exchange analyst at Sony Financial Group, noted that 'close monitoring of the situation in the Middle East is still necessary today.'
The US dollar index held steady at 99.67, while financial markets increased their expectations of a Federal Reserve rate hike to 67%, up from around 40% a week earlier.
US job openings data for July and the ISM manufacturing index for August came in below market forecasts, but Ishikawa cautioned that 'if the figures are weak, the impact could be offset by rising tensions in the Middle East.'