Dollar Surges as Crude Oil Prices Jump Amid Supply Disruption Concerns

The US dollar strengthened across major currencies on September 14 in London foreign exchange trading, driven by a surge in crude oil futures. The euro and British pound fell against the greenback.

Crude oil prices rose nearly 5% due to concerns over supply disruptions following an attack on Saudi Arabia's East-West pipeline. This led to Brent crude futures climbing to $109 per barrel.

Francesco Pesole, FX strategist at ING, noted that the dollar is likely to continue rising gradually if the Federal Reserve signals a commitment to policy discipline at the FOMC meeting on September 15.

Pesole stated that the market has already priced in a 22-basis-point rate hike at the upcoming FOMC meeting and that the Fed may maintain a hawkish tone given the recent rise in energy prices.