Dollar Heads for Best Day in Two Weeks as Oil Prices Advance

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Or sign-in if you have an account.9ydsgjb6e(31jgas2tr}x}wt_media_dl_1.png Bloomberg(Bloomberg) — The dollar is poised to have its best day in two weeks as oil prices advanced amid fading optimism over easing tensions in the Middle East. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Bloomberg Dollar Spot Index rose 0.2% Thursday, the most since July 23, following three days of declines. Brent rallied after a reported deal that would prohibit the passage of vessels belonging to the US, Israel and other hostile countries through the Strait of Hormuz. Higher energy costs have sparked inflation concerns that could prompt the Federal Reserve to deliver an interest-rate hike in September. Yields on US Treasuries also rose. “What we are seeing is a bit of an unwind of rosy expectations,” said Paresh Upadhyaya, a strategist at Pioneer Investments. “It’s highly unlikely the US would accept many of the terms of the deal without significant changes.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe dollar has advanced 1.5% since the US attack on Iran late February disrupted global energy flows. The oil rally has boosted the greenback and weighed on currencies from energy-importing nations like Japan.All currencies in the Group of 10 fell against the dollar with the yen lagging behind many peers. The Japanese currency weakened beyond 158 per US dollar for the first time in nearly a week. “With tensions elevated, investors are immediately beginning to price higher global inflation risk,” said Marcio Riauba, head of trading desk at Banco StoneX. He added that investors are rushing to safety. Traders are bracing for more volatility amid risks of further interventions after the recent US-Japan joint efforts to prop up the yen. The cost of one-day option contracts tied to Bloomberg’s gauge of the dollar jumped to the highest since July 30 as traders await Friday’s jobs report. Meanwhile, “solid US productivity growth is giving the dollar a fresh tailwind,” said Elias Haddad, global head of markets strategy at Brown Brothers Harriman.On Thursday, the Bureau of Labor Statistics said US labor productivity accelerated at a faster-than-expected pace in the second quarter.—With assistance from Beatriz Amat.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.