Hanoi:The dollar traded near its highest level in 18 months as escalating conflict in the Middle East prompted investors to exercise caution ahead of the upcoming US inflation data, which could influence monetary policy.
According to Oman News Agency, US President Donald Trump's announcement of an energy ceasefire between Ukraine and Russia led to a 1.4 percent drop in Brent crude futures to $103.3 per barrel during Asian trading hours.
The dollar index, reflecting the value of the US currency against six major counterparts, slightly decreased to 102.16, but stayed close to its recent peak. Trading activity was subdued due to a holiday in Japan, which reduced liquidity in the region.
The dollar declined 0.06 percent against the yen, trading at 158.245 yen. Meanwhile, the Australian and New Zealand dollars remained steady at approximately $0.69815 and $0.56080, respectively.
Market attention is shifting to the US Consumer Price Index report, set to be released shortly, which is the last significant economic data before the Federal Reserve's late October meeting on interest rates. The Fed raised rates last month for the first time since 2023 in an effort to control inflation, and markets are keenly observing data to gauge future policy moves.
The euro increased by about 0.1 percent to $1.121, despite five consecutive weeks of losses, as concerns persist over France's fiscal situation ahead of the 2027 presidential election. The Indian rupee also rose one percent to 95.8 against the dollar, aided by the central bank's strategy to divert oil companies' dollar purchases from the spot market.
The South Korean won hit its highest level in two years, rising 0.5 percent to 1,334 against the dollar, while the British pound gained 0.1 percent to $1.3245.
