Forex News: U.S. Dollar Advances Amid Increasing Expectations Of A

U.S. Dollar Advances Amid Increasing Expectations Of A Fed Rate Hike

(RTTNews) - The U.S. Dollar value edged higher as crude oil prices skyrocketed after the U.S. announced fresh wave of strikes against Iran following the weekend attacks. With Strait of Hormuz shut, inflation concerns rising, expectations of a rate hike by the U.S. Federal Reserve has soared.

Today, the U.S. Dollar Index DXY, which measures the Greenback against a basket of other major currencies, was last seen trading at 99.66, up by 0.25 (or 0.25%).

While against the Euro, the USD was trading at 1.159, up by 0.21%, against the GBP, the USD was trading at 1.351, up by 0.24%.

Against the USD, the Japanese Yen was trading at 160.191, down by 0.29% and the Swiss Franc was trading at 0.811, down by 0.42%.

Against the USD, the Canadian Dollar was trading at 1.390, down by 0.32%. The S&P Global Canada's Manufacturing Purchasing Managers' Index edged lower to 53.00 in August from 53.50 in July though remaining above the "50.00 no-change threshold" for the fifth consecutive month.

Against one unit of Australian Dollar, the USD was trading at 0.714, up by 0.30%.

Today, compounding the gulf war tensions, U.S. President Donald Trump announced through Truth Social that the U.S. has just commenced large and powerful strikes on Iran in retaliation for the nation targeting the U.S. bases in Jordan.

While Trump warned of more harsher strikes if Iran attempts to retaliate, Iran warned that the U.S. will regret for its actions.

Axios reported that the U.S. strikes hit targets along the southern coast of Iran in the cities of Bandar Abbas, Jask, Chabahar, Konarak, Minab, Sirik, and the island of Qeshm.

The crisis began over this weekend after U.S. forces conducted strikes on Iranian launchers in Larak Island in the Strait of Hormuz.

In retaliation, Iran targeted two U.S. airbases in Jordan, pushing crude oil prices higher due to renewed supply disruption concerns.

Trump vowed that U.S. forces will hit back Iran very hard.

Iran's President Masoud Pezeshkian stated that Iran is ready to return to the commitments of the June 17 Memorandum of Understanding provided the U.S. does the same.

While Trump claimed that the Strait of Hormuz is fully under the U.S. control, and ships are transiting through the seaway protected by U.S. Navy.

In a video message, Iranian Parliament's Speaker Mohammad Bagher Ghalibaf warned that Iranian forces fully control the strait.

Seafarers avoided voyages through the region to avoid vessels coming under attack and shipping traffic across the strait has largely reduced.

As a result, oil prices surged for the second day today.

According to the Automobile Association of America, the national average price of gasoline in the U.S. ranges around $4.10 per gallon.

In the U.S., the Logistics Managers' Index fell for a second consecutive month to 66.60 in August, from 68.90 in July, pointing to the slowest growth in the logistics sector in six months.

The Institute for Supply Management's PMI fell to 54.60 in August from July's near four-year high of 55.60, below market expectations of 55.2.

According to the U.S. Bureau of Labor Statistics, the Job Openings and Labor Turnover Survey revealed that job openings increased by 89,000 to 7,271,000 in July from a downwardly revised 7,182,000 in June, below market expectations of 7,300,000.

The number of workers voluntarily leaving their jobs decreased by 157,000 to 3,060,000 in July from a revised 3,210,000 of the prior month.

According to the CME Group's FedWatch Tool, currently investors are betting on a 68.00% chance of a 25-basis-point interest rate hike at the upcoming meeting of the U.S. Federal Reserve on September 15-16 while the odds on rates being held at the current level stand at 32.80%.

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