Dollar Holds Near 1-Week High at 100.96 as Houthi Blockade Jolts Oil
Updated
Updated · WTVB · Jul 20
Dollar Holds Near 1-Week High at 100.96 as Houthi Blockade Jolts Oil
3 articles · Updated · WTVB · Jul 20
Summary
The dollar index steadied at 100.96 on Tuesday, near its highest since July 15, as traders balanced a Houthi naval blockade on Saudi Arabia against a 10-day ceasefire proposal delivered to Tehran.
Oil’s swings near six-week highs pushed U.S. Treasury yields back up, with the 10-year at 4.5937% and 30-year yields still above 5%, reflecting concern that higher energy costs could reignite inflation.
Major currency moves were muted: the dollar held at 162.50 yen, the euro traded at $1.1415 and sterling stayed at $1.3434 after new UK Prime Minister Andy Burnham pledged to keep fiscal rules.
Elsewhere, the New Zealand dollar rose 0.4% to $0.5860 on firm inflation data, while the ECB is expected to hold rates this week even as high oil prices fuel bets on a September hike to its 2.25% deposit rate.