Dollar index gains in line with rising yields as fresh US-Iran military strikes lift oil prices

The dollar index is seen inching closer to the crucial 100 mark and holding around a 3-week high on Wednesday, as fresh geopolitical tensions between US and Iran are driving oil prices higher and are triggering a new wave of inflationary concerns that could possibly draw down to Federal rate hikes going forward. Global bond yields rose to multi-decade highs as concerns over higher inflation fueled expectations of a Federal Reserve interest-rate increase later this month, curbing appetite for riskier assets. Meanwhile, economic data from the US shows July JOLTS job openings fell below market expectations at 7.27 million, while the ISM Manufacturing PMI eased slightly from 55.6 to 54.6 in August. August jobs report on Friday will now be closely monitored for further clarity. The dollar index that measures the greenback against a basket of currencies is currently quoting at 99.70, up 0.06% on the day following a 0.25% surge yesterday. Among basket currencies, EUR/USD and GBP/USD are ...