Dollar Surges on Inflation Data Expectations

The US dollar strengthened on Wednesday as markets awaited inflation data for clues to Federal Reserve interest rates. The release of U.S. inflation data is expected to provide insight into the direction of interest rates, with some analysts predicting a mild inflation landing.

Oil prices rose after an attack by Iran-backed Houthis on a cargo ship in the Bab el-Mandeb strait and a U.S. military strike on a container ship off Pakistan attempting to break its blockade of the Strait of Hormuz.

The yen was 0.1% weaker against the dollar at 159.44 yen, reaching its softest levels of the month despite joint intervention by U.S. and Japanese authorities. The British pound remained unchanged at $1.3505.