Oil Price Surge Pushes Dollar to Two-Week High Amid Global Uncertainty

The recent attacks in Saudi Arabia have sent oil prices soaring to around $108 per barrel, causing a ripple effect on currency markets.

The US dollar has reached a two-week high as investors weigh the risk of higher inflation and central bank policy changes.

The European Central Bank has already raised interest rates, but further increases may be necessary if energy prices remain high. The euro is under pressure due to higher energy costs and uncertainty over European growth.

The Bank of England is expected to leave interest rates unchanged this week, but traders have increased their expectations for further increases later this year and into 2027.