Dollar holds gains as traders await US price data after oil jumps

Live updates

1. 44d ago

   Fed Hikes Rates as Oil Prices Drive Inflation Fears

   The Federal Reserve raised its benchmark interest rate on Wednesday for the first time since 2023 to combat stubbornly high inflation, sending the Dow down 700 points. Kevin Warsh stated that inflation remains too high, raising questions about potential political friction with the White House. Meanwhile, European shares rose and oil prices declined as markets awaited a Bank of England rate decision. In India, benchmark indices diverged on Thursday as the Sensex closed lower while the Nifty held 23,250.

   Why it matters

   Energy shocks stemming from the Iran war have driven up oil and gas prices, forcing policy adjustments across global central banks. Andy Burnham warned of a challenging Budget due to these climbing energy costs. The Federal Reserve response marks a shift in monetary policy following years of holding rates steady.

   What is confirmed

   • The Federal Reserve raised its benchmark interest rate on Wednesday for the first time since 2023.
   • Kevin Warsh stated that inflation remains too high, according to CNBC-TV18 reporting.
   • The Dow fell 700 points following the rate decision and remarks.
   • European shares rose and oil prices fell on Thursday as investors awaited a Bank of England rate decision.
   • Indian benchmark indices diverged on Thursday, with the Sensex ending lower and the Nifty holding 23,250.

   Still unconfirmed

   • The Federal Reserve rate hike could spur a sharp response from the White House.

   What to watch next

   • The official Bank of England rate decision and accompanying policy statements.
   • White House reactions to the Federal Reserve interest rate hike.
   • Further trajectory of oil and gas prices amid ongoing conflict in the Middle East.
   Sources used for this update (5)

   1. coingape.com — FOMC Meeting 2026 LIVE Updates Sept. 16: Will Warsh Defy Trump With Fed Rate Hike Today?
   2. finance.yahoo.com — Burnham warns of ‘challenging’ Budget as inflation rises
   3. www.cnbctv18.com — US Fed Meeting LIVE Updates: Dow falls 700 points after Kevin Warsh says inflation remains too high
   4. economictimes.indiatimes.com — Sensex Today | Nifty 50 | Stock Market Highlights: Sensex ends marginally lower, Nifty holds 23,250; HDFC Life jumps 5%, ONGC drops 2%
   5. www.marketscreener.com — European Midday Briefing : Shares Rise, Oil Falls as Investors Await BOE Rate Decision
   confidence 95%
2. 45d ago

   US Dollar strengthens as oil prices rise and Fed hike bets firm

   The US dollar is trading near two-week highs as climbing oil prices lift yields and increase the likelihood of Federal Reserve rate hikes. The euro hit one-month lows on Tuesday against the strengthening currency. This movement follows an energy shock in the Middle East where Houthi rebel attacks forced Saudi Arabia to close its main East-West oil pipeline. Traders are now focused on upcoming US price data to gauge further Federal Reserve actions. Meanwhile, Indian benchmark indices showed high volatility on Wednesday after a strong open.

   Why it matters

   Energy instability in the Middle East often drives investors toward the dollar as a safe haven. Recent Producer Price Index data already increased expectations for Federal Reserve policy shifts. The current volatility reflects a tension between geopolitical risk and US inflation data.

   What is confirmed

   • Houthi rebels launched attacks that forced Saudi Arabia to shut its primary East-West oil pipeline.
   • The US dollar is trading near two-week highs.

   Still unconfirmed

   • Indian benchmark indices are trading with high volatility on Wednesday.
   • The euro reached one-month lows against the dollar on Tuesday.

   What to watch next

   • Release of US price data
   • Federal Reserve interest rate decisions
   Sources used for this update (2)

   1. www.cnbc.com — Dollar ticks higher as oil prices climb, Fed rate hike chances firm
   2. economictimes.indiatimes.com — Sensex Today | Nifty 50 | Stock Market Live Updates: Sensex jumps 400 points, Nifty above 23,200; FMCG, financial stocks rally
   confidence 80%
3. 46d ago

   US Dollar Holds Gains as Houthi Attacks Spike Oil Prices

   The US dollar remains near weekly highs as traders anticipate US price data following an energy shock in the Middle East. Oil prices soared after Iran-backed Houthi rebels launched attacks that forced Saudi Arabia to shut its primary East-West oil pipeline. This volatility follows a strong day for the dollar driven by Producer Price Index data, which increased market expectations for Federal Reserve actions. While the dollar strengthened against the euro, the yen and various Asian currencies declined.

   Why it matters

   Energy disruptions in the Middle East often trigger a flight to safe-haven assets like the US dollar. Market participants are currently balancing geopolitical risk against upcoming US inflation indicators to predict central bank policy.

   What is confirmed

   • Iran-backed Houthi rebels forced Saudi Arabia to shut down its key East-West oil pipeline.

   What to watch next

   • Release of US price data
   • Updates on the operational status of the Saudi East-West pipeline
   Sources used for this update (5)

   1. economictimes.indiatimes.com — Coronavirus Impact on Crude Oil Price
   2. jen.jiji.com — Kazakh President arrives in New Delhi for BRICS Summit
   3. jen.jiji.com — Mongolia and France agree to strengthen school lunch program
   4. jen.jiji.com — Kazakhstan, Malawi discuss mining industry and agriculture cooperation
   5. san.com — Fighting between Houthis and Saudi Arabia drives oil prices soaring
   confidence 90%
4. 49d ago

   US Dollar Holds Gains Amid Middle East Energy Shock

   The US dollar is holding near its weekly high as traders react to an energy shock in the Middle East and await US price data. The currency recently experienced its best day in two weeks, driven by oil price jumps and Producer Price Index data that increased bets on Federal Reserve actions. While the dollar has edged higher against the euro, Asian currencies and the yen have weakened in response to the current market volatility.

   Why it matters

   Currency markets are reacting to a combination of geopolitical instability and inflation data. Shifts in US price data and European Central Bank rate hikes are currently reshaping global currency valuations.

   What is confirmed

   • The US dollar held near its highest levels of the past week on Friday.
   • The yen has slipped as the Middle East energy shock deepens.
   • Asian currencies have weakened.

   Still unconfirmed

   • The dollar is eyeing a seven-month low due to US buybacks and inflation.
   • Treasury yields declined but remain at elevated levels.
   • Hot US inflation and an ECB hike are reshaping currency markets.
   • Dollar price action is quite poor.

   What to watch next

   • Release of upcoming US price data
   • Federal Reserve policy decisions regarding inflation bets
   Sources used for this update (9)

   1. Reuters — Dollar holds gains, yen slips as Middle East energy shock deepens
   2. Bloomberg.com — Dollar Has Best Day in Two Weeks as PPI, Oil Add to Fed Bets
   3. Yahoo Finance — Dollar Eyes Seven-Month Low With US Buybacks, Inflation In Focus
   4. Investing.com — Dollar rises as hot U.S. inflation, ECB hike reshape currency markets
   5. Investing.com — Asian currencies weaken as yen slips, dollar holds near weekly high
   6. ING Think — FX Daily: Dollar price action quite poor
   7. Barron's — Dollar Edges Higher, Treasury Yields Decline But Stay at Elevated Levels
   8. www.marketscreener.com — Oura CMO Says Wearable Health Tracking Moving Beyond Checkups
   9. lufkindailynews.com — Dollar edges higher against euro after U.S. inflation data
   confidence 70%