The U.S. dollar hovered near a one-week high on Tuesday, with markets torn between conflicting Middle East signals, as hostilities in the region stoked renewed fears over energy supplies while hopes for a ceasefire offered some relief.
Middle East Tensions
Against the yen, the dollar was largely flat at 162.50 yen. The euro was also little changed at $1.1415, while the British pound held firm at $1.3434 after Britain’s new Prime Minister Andy Burnham vowed to stick to fiscal rules.
The U.S. dollar index, which measures the currency against a basket of six peers, was steady at 100.96, near its highest level since July 15.
Inflation Risks
U.S. Treasury yields crept back up as traders weighed whether a renewed jump in oil prices, driven by the widening war with Iran, would eventually feed through to consumer prices.
The benchmark 10-year Treasury yield remained elevated, trading at 4.5937%, while yields on 30-year Treasuries were also firmly above the 5% mark.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
