Dollar Advances as Middle East Tensions Lift Oil and Rate Expectations
The US dollar strengthened broadly against major peers after renewed Middle East tensions and the closure of the Strait of Hormuz triggered a 3.3% surge in crude oil prices. This energy rebound has raised US inflation concerns, pushing Federal Reserve rate hike expectations higher and keeping the Dollar Index steady above 101. Meanwhile, the Bank of Japan assesses inflation overshoot risks tied to a weak yen, and upcoming US CPI data remains in focus.

















