Dollar near two-month high supported by oil price fluctuations

The US dollar hovered near a two-month high on Tuesday, supported by oil price fluctuations and the rapid rise in Treasury yields, but gains were limited as traders awaited US data this week for clues on the interest rate path.

The US dollar hovered near a two-month high on Tuesday, supported by oil price fluctuations and the rapid rise in Treasury yields. However, gains were limited as traders awaited US data this week for clues on the interest rate path. The euro traded near a three-month low of $1.1367 after the European Central Bank president signaled measured steps to curb inflation. The dollar index, which measures the greenback against a basket of currencies, edged up to 101.2, on track for a 1.8% rise this month, its best performance since June. Joseph Capurso, head of foreign exchange at Commonwealth Bank of Australia, said the dollar is seeing limited gains for now, with investors awaiting US data later this week, while markets are gradually becoming less affected by oil price movements. The FedWatch tool indicates current market expectations point to a probability of over 70% for a US rate hike in late October, compared to a 57% probability a week ago.