On Thursday, the dollar edged higher against major currencies, reflecting optimism about the U.S. economy’s resilience and an anticipated steady hand from the Federal Reserve on interest rates later this month. While oil price fluctuations are expected to settle, the dollar experienced a near one-month low.
U.S. unemployment benefit claims fell last week, signaling a stable labor market, and retail sales saw slight improvement in June, although receipts at service stations saw a decline due to lower gasoline prices. In times of oil price increases, the U.S. economy’s lesser exposure to energy shocks attracts dollar investments over the euro and yen.
The Middle East’s tensions pushed oil up by 0.77%, reaching $85.59. As Tehran urged Yemen’s Houthis to disrupt Red Sea shipping, energy supply fears grew. “Cooling inflation reports allow the Fed to delay rate hikes,” said Tim Holland…
