The dollar strengthened as the deepening war in the Middle East is creating an inflationary shock that is favoring oil producers and upending bets on central bank interest-rate cuts.
The Bloomberg Dollar Spot Index climbed as much as 0.7%, extending last week’s 1.3% advance, boosted by a rush to hedge the risk of a prolonged conflict. The gauge pared the rally after the Financial TimesBloomberg Terminal reported that Group-of-Seven countries will discuss a possible joint release of petroleum from reserves to cap a surge in energy prices.
