USD Gains on Safe-Haven Demand
The U.S. dollar rose Tuesday, supported by rising Treasury yields and geopolitical tensions in the Middle East. The U.S. Dollar Index climbed 0.2% to 101.17, reaching its highest level since July 13.
Oil Prices and Inflation Concerns
Higher oil prices reignited inflation fears after a temporary moderation in the CPI and PPI. Markets remain attentive to the Federal Reserve and the possibility of further interest rate hikes.
Escalation with Iran
The U.S. has carried out airstrikes against Iran for ten consecutive days, with Tehran retaliating against U.S. bases and shipping in the Strait of Hormuz. Officials emphasized continued military pressure and vigilance.
Currency Moves
The Japanese yen fell to a 40-year low at 163.19 versus the dollar. The British pound slipped to $1.3379, while UK gilt yields rose amid Andy Burnham’s new government. The euro remained steady at $1.1401 ahead of the ECB meeting.
