Dollar stays near weekly high amid war developments
The article explains that the US dollar remained steady near its highest levels in a week amidst broad tensions following escalating conflicts in the Middle East and rising concerns over disruptions to global energy supplies. This stability is attributed to increased demand for the US currency as a safe haven, especially with oil prices experiencing high levels before retreating, due to a maritime blockade imposed by the Houthi group on Saudi Arabia and the possibility of reaching a temporary ceasefire. Additionally, US Treasury bond yields have risen, reflecting growing inflation pressures and expectations of shifts in monetary policy, with the probability of a US interest rate hike in the upcoming meeting dropping to 17%, down from 63% in September. Meanwhile, markets in Europe, Australia, and other parts of the world anticipate continued tensions and risks impacting monetary policies.
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