Bessent Urges Japan on Fiscal Discipline, BOJ Rate Hikes 
Treasury Yields Set to Stay High as Debt Supply Pressures Bond Market 
German Retail Sales Drop 3.4% in July 
Australia Current Account Deficit Widens to A$27.2 Billion 
Canada Backs €100 Billion Global Defence Bank 
Oil Prices Rise as US-Iran Conflict Threatens Middle East Supply 
Asian Stocks Tumble as Oil Surge Fuels Rate Hike Fears 
Japan Bond Yields Top 3% as Inflation, Fiscal Risks Rise 
RBNZ Raises Interest Rate to 2.75%, Kiwi Dollar Slides 
Asian Stocks Slip as Fed Rate Hike Bets and Oil Surge Weigh 
Global Markets Brace for Fed Rate Hike as Oil Tops $91 
Brazil, US Resume Tariff Talks as Trade Tensions Persist 
Oil Prices Rise as U.S.-Iran Fighting Fuels Supply Fears 
Bank of England Sees Surge in Higher-Risk Collateral 
China Manufacturing PMI Contracts Again as Recovery Remains Fragile 
Gold Prices Steady as U.S.-Iran Tensions Lift Inflation Risks 
Gold Prices Slide as Iran Conflict Fuels Fed Rate Hike Bets 
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The U.S. dollar hovered near a two-week high on Wednesday as escalating Middle East tensions pushed oil prices higher, fueling inflation concerns and lifting global bond yields.
The dollar index rose 0.11% to 99.79, its strongest level since August 17, while the euro slipped 0.14% to $1.1576. Higher U.S. Treasury yields and expectations for another Federal Reserve rate hike strengthened demand for the greenback as a safe-haven currency.
Market concerns intensified after the United States launched airstrikes against Iran on Tuesday, prompting retaliation from Tehran in the most serious escalation in weeks.
Oil prices extended their gains, with Brent crude futures rising 0.75% to $95.36 per barrel and U.S. West Texas Intermediate crude gaining 0.41% to $90.62.
The benchmark U.S. 10-year Treasury yield climbed as high as 4.812%, its strongest since November 2023, before easing to 4.804%. Japan's 10-year government bond yield reached 3.01%, extending gains after crossing 3% on Tuesday.
Meanwhile, the New Zealand dollar tumbled 1.01% to $0.5844 despite the Reserve Bank of New Zealand raising its official cash rate by 25 basis points to 2.75%. Investors viewed the decision as less hawkish than anticipated.
Expectations for tighter U.S. monetary policy also remained elevated. Markets now price a 68% probability of a Fed rate hike in September, up from roughly 40% a week earlier, according to CME FedWatch.
Investors are awaiting August employment and inflation figures ahead of the Fed's September 15-16 meeting. Economists expect Friday's jobs report to show the U.S. economy added 56,000 positions in August.
Elsewhere, the British pound fell 0.15% to $1.3495, while the Australian dollar declined 0.15% to $0.7133.
The Japanese yen traded around 160.15 per dollar despite expectations for a Bank of Japan rate hike this month. The currency remains under pressure as elevated oil prices and widening yield dynamics outweigh the impact of recent U.S.-Japan intervention.
In cryptocurrency markets, Bitcoin edged 0.07% higher to $77,485.49, while Ether slipped 0.27% to $2,413.74.
