Forex-Dollar holds near 2-month high as markets weigh rate hikes, Iran diplomacy
UUP•Oil, yen and major currency moves
The euro EUR= was at $1.1446 in early trading, loitering near its weakest level since late July. Sterling GBP= bought $1.3337. The dollar index =USD, which measures the US currency against six rivals, was at 100.56.
Oil markets remain in the spotlight with Brent crude futures LCOc1 at $99.22 per barrel on hopes that diplomacy at the UN General Assembly could pave the way for a resolution to the Middle East war. Brent has risen 37% since the conflict erupted at the end of February.
US President Donald Trump warned that he could annihilate Iran if there is no deal to end the war, but also suggested an agreement could come soon amid the diplomatic efforts at the UN.
"The good news is that oil prices have moderated somewhat from the highs but the path forward remains unclear given the lack of clarity around a possible resolution of the conflict," said Michael Wan, a currency analyst at MUFG.
