Dollar climbs on oil and tensions
The US dollar broadly strengthened during today’s trading session, recording its highest level against the Japanese yen in 40 years. It also rose against the euro, supported by rising oil prices and the European Central Bank's decision to keep interest rates unchanged. This came amid continued increases in Brent crude oil prices over several consecutive sessions, surpassing $100 per barrel temporarily, following attacks by the Houthi group targeting two Saudi oil ships, which heightened concerns over global supply and inflationary pressures. Rising geopolitical tensions between the United States and Iran drove oil prices higher, increasing the likelihood of a rate hike by the Federal Reserve. Meanwhile, inflation in the UK is slowing, and continued monetary policy restrictions contributed to a decline in the euro's value against the dollar. At the same time, markets remained tense due to military escalations between the US and Iran and threats to oil supplies, which pushed Brent prices higher and primarily supported the dollar amid ongoing expectations of a US interest rate increase.
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