The U.S. dollar maintained a one-week high on Tuesday, as markets struggled with contradictory signals from the Middle East. Regional conflicts stirred fears of energy disruptions, yet hopes for a ceasefire offered temporary relief. The dollar remained stable against the yen at 162.49 yen, while the euro and the British pound showed minimal movement.
The U.S. dollar index, which contrasts the currency against six major peers, held steady at 100.93, following its peak since July 15 in the previous session. The continued tension in the Middle East kept oil prices erratic, highlighted by Yemen’s Houthi rebels declaring a naval blockade on Saudi Arabia, impacting global energy supply concerns.
U.S. Treasury yields rose amidst inflation worries fuelled by increasing oil prices linked to the Middle East crisis. Recent U.S. economic data suggested a lower likelihood of immediate Federal Reserve rate hikes, though the chance of a September hike has increased. Global currencies showed varying resilience amid geopolitical and economic uncertainties.
(With inputs from agencies.)
