The dollar remained near its highest level in about two weeks on Wednesday, as renewed hostilities in the Middle East led to higher oil prices, revived fears of inflation and increased pressures raising bond yields.
The dollar index, which measures the performance of the US currency against a basket of currencies including the yen and the euro, rose 0.11% to 99.79 points, its highest level since August 17. The euro fell 0.13% to $1.1577.
Demand for the US currency as a safe haven was strengthened by the rise in Treasury bond yields and increasing expectations that the Federal Reserve (the US central bank) would raise interest rates, despite the release of recent economic data below expectations.
