The U.S. dollar maintained its strength against most major currencies on Thursday, as escalating Gulf tensions prompted safe-haven bids and surging oil prices increased rate hike expectations, putting the Japanese yen under pressure.
The dollar was valued at 162.41 yen, near its strongest level since early July. Meanwhile, the euro and British pound remained stable at $1.1426 and $1.3392, respectively. Following a recent rate hike by New Zealand’s central bank, the kiwi dollar extended its gains by 0.5% to $0.5725, while the Australian dollar saw a modest increase to $0.6936.
Brent crude futures rose to $79.28 per barrel, at the highest in over two weeks. Rising oil prices, driven by Middle East tensions, pressured the yen close to a 40-year low, raising inflation concerns and leading to increased market expectations for a U.S. interest rate hike.
(With inputs from agencies.)
