Dollar index seen well supported as soaring oil prices expedite case for a Fed rate hike

The dollar index is seen well supported above 99 mark on Tuesday as soaring oil price are seen setting stage for a Federal rate hike in Feds upcoming policy meet. Higher oil prices have added to inflationary pressures, clouding the inflation outlook and reinforcing expectations for further Fed tightening. Oil prices extended their gains as Saudi Arabias East-West pipeline remained shut, while Ukraine disputed President Trumps claim that it had already reached an agreement with Russia to halt attacks on energy infrastructure. The yield on the 10-Year US Treasury note reached 5% on Tuesday, rising for the fifth consecutive session as elevated oil prices fueled inflation concerns. Brent crude climbed above $107 per barrel on Tuesday following a volatile start to the week, as investors continued to navigate heightened uncertainty over global supply. DXY is currently trading near a two-week high at 99.41, up 0.30% on the day. Among basket currencies, EUR/USD and GBP/USD are holding ...