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Dollar Soars to 2-Month High Amid Rate Hike Bets, Iran Diplomacy Hopes Ease Oil Prices
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Firstpost•23-09-2026, 13:04
Dollar Soars to 2-Month High Amid Rate Hike Bets, Iran Diplomacy Hopes Ease Oil Prices
- •The US dollar climbed to a two-month high as markets anticipated further interest rate hikes by major central banks.
- •The dollar index rose 0.16% to 100.71, with the euro and sterling weakening against the US currency.
- •Hopes of diplomatic progress in the Iran conflict helped ease oil prices, with Brent crude futures falling to a two-week low of $98.46 a barrel.
- •Markets are closely watching a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping for signs of improved US-China relations.
- •The Japanese yen remained under pressure around 157.58 per dollar, with traders alert to potential intervention by Japanese authorities despite a recent rate hike.
Key Questions Answered
The US dollar climbed to a two-month high as markets assessed the prospect of further interest rate hikes by major central banks, driven by inflation concerns and rising oil prices stemming from the conflict involving the US, Israel, and Iran.
Brent crude futures fell to $98.46 a barrel amid reports that Iran could reopen the Strait of Hormuz and growing expectations that diplomatic efforts at the United Nations General Assembly could help resolve the conflict.
The yen remained under pressure at around 157.58 per dollar after the Bank of Japan raised interest rates to a 31-year high, but the move was viewed by markets as insufficiently hawkish due to dissenting votes and a lack of clear signals on future tightening.
