Forex News: U.S. Dollar Advances As Soaring Crude Oil Prices,

U.S. Dollar Advances As Soaring Crude Oil Prices, US Labor Department Data

(RTTNews) - The U.S. Dollar value edges higher amid concerns of the Middle East crisis expanding after fresh attacks on two Saudi Arabian tankers in the Red Sea by Yemen's Houthi rebels. The consequential rise in crude oil price have reinforced expectations of rate hike by the U.S. Federal Reserve.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 101.44, down by 0.33 (or 0.33%) today.

Today, the data released by the U.S. Department of Labor revealed that the unemployment benefit claims sank by 22,000 to 187,000 for the week to July 18, well under expectations of an increase to 212,000, lowest since the 1960s.

The unexpected drop and the deviation from forecasts indicate a stronger labor market. Hinting economic resilience, the lower-than-expected claims numbers, supported the U.S. dollar on the upside.

While against the Euro, the USD was trading at 1.138, up by 0.29%, against the GBP, the USD was trading at 1.332, up by 0.44%.

Against the USD, the Japanese Yen was trading at 163.854, down by 0.44%, the Swiss Franc was trading at 0.817, down by 0.30%; and the Canadian Dollar was trading at 1.408, up by 0.02%.

Against one unit of Australian Dollar, the USD was trading at 0.697, up by 0.41%.

The Middle East crisis, which began on February 28 between the U.S. and Iran, showed some signs of easing after both the nations signed a Memorandum of Understanding on June 17 to resolve their disputes through peace talks.

However, in less than a month, the exchange of attacks resumed after Iran fired at vessels transiting through the Strait of Hormuz, rendering the MoU as suspended.

As of now, U.S. military has conducted 12 nights of consecutive strikes against Iran.

U.S. Central Command stated that through the attacks, the U.S. intended to degrade Iran's capabilities to conduct any further strikes on ships traveling through the strait.

Amid this, on July 20, the Iran-backed Houthi militant group announced a maritime blockade on Saudi Arabia.

Now, two Saudi Arabian oil tankers, Encelia and Layla, transiting through the Red Sea came under attack by the Iran-aligned Houthi militant group of Yemen.

Houthi military spokesperson Yahya Saree stated that the attacks were carried out using a number of ballistic and cruise missiles as well as drones. The group also claimed to have forced nearly 10 ships to abandon their journeys and turn back.

U.S. President Donald Trump, who termed the Houthis as "a proxy of Iran", warned that the U.S. would hold Iran responsible and inflict a major military punishment to it if Houthis repeat their attacks.

Crude oil prices catapulted by more than 6% amid growing concerns of a widespread conflict in the Middle East and increasing supply disruption concerns.

Economists anticipate a possible hike in the interest rates by the U.S. Federal Reserve as a response to oil-linked inflation pressure.

Currently, investors are betting on a 33.70% chance of a quarter-basis-point interest rate-hike in the upcoming meeting of the U.S. Federal Reserve on July 28-29 while the odds on rates being held at the current level stand at 66.30%, according to the CME Group's FedWatch Tool.

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