US Dollar Rises on Middle East Tensions and Oil Prices
The U.S. dollar index rose 0.36% to 98.30 as renewed Middle East tensions and high crude prices supported the currency. Investors are awaiting U.S. inflation data while monitoring potential Japanese yen intervention and upcoming diplomatic talks between Donald Trump and Xi Jinping in Beijing.
The United States dollar rose 0.36% to 98.30 on Tuesday as Middle East instability drove safe-haven demand. The currency index remains below its late March peak of 100.64 but has climbed for two consecutive sessions. Energy supply risks and persistent inflation dampen hopes for near-term interest rate cuts.
### Energy Risks Fuel Dollar Strength Oil-reliant economies face heavy selling pressure after Iran effectively closed the Strait of Hormuz. Oil prices rose 3% on Tuesday as prospects for a ceasefire faded following dismissive comments from Donald Trump. Macquarie Group strategist Thierry Wizman noted that high energy prices act as a "pernicious" tax on global growth while supporting the dollar.
