Dollar Hovers Near Two-Month High

Singapore, 23 Sep 2026 (ONA) — The
dollar steadied near its highest levels in two months today amid expectations
of near-term interest rate hikes, while investors remained watchful as oil
prices retreated on hopes of a diplomatic breakthrough to end the war in the
Middle East.

The euro stood at $1.1446 in early
trading, remaining near its lowest level since late July, while sterling
reached $1.3337.

The dollar index, which measures the
performance of the American currency against six major currencies, steadied at
100.56 points.

Currency market focus centred on the
recent wave of interest rate hikes and hawkish remarks from major central
banks, at a time when the US-Israeli conflict with Iran is driving oil prices
higher and fuelling inflation fears.

Investors now expect further
monetary tightening from central banks, after officials at the Federal Reserve
indicated the possibility of additional rate hikes if inflation does not
subside.

Oil markets also remained in focus,
as Brent crude futures reached $99.22 per barrel amid hopes that diplomatic
efforts during the United Nations General Assembly meetings will open the way
towards a settlement of the war in the Middle East.

The Japanese yen reached 157.55
against the dollar, as traders remained cautious over the possibility of official
intervention in the foreign exchange market, after markets deemed the Bank of
Japan’s rate hike last week to a 31-year high insufficiently hawkish.

— Ends/Khalid