The U.S. dollar climbed to a two-week high as tensions in the Middle East drove up oil prices, encouraging investors to shift towards the safe-haven currency. Concurrently, concerns over AI by leading CEOs pressured stocks, further boosting the dollar, while speculation on a Federal Reserve rate hike added to its strength.
The U.S. dollar index, monitoring the currency against six major counterparts, increased almost 0.5% to 99.59, marking its highest point since September 2. Notably, the euro dipped to a one-month low, with more than a 0.5% decline, and the British pound also fell by 0.4%.
Rising oil prices unsettled investors, driving global bond yields toward multi-year highs, as Brent crude surged 3% to $108 per barrel. Strikes on Saudi Arabia by the Houthi further exacerbated energy supply concerns, amid stalled diplomacy between the U.S. and Iran and regional shipping attacks.
(With inputs from agencies.)
