US dollar approaches its highest level since 2026 as fluctuating oil prices heighten concerns over rising inflation

The U.S. dollar strengthened for the third day in a row on Thursday, remaining near its highest point of the year. This momentum was fueled by soaring energy costs, which have heightened concerns about rising inflation and may prompt central banks to reconsider their stance on interest rates. The sharp climb in energy prices is casting a shadow over the global economic outlook, with experts cautioning that an extended conflict in the Middle East could intensify these challenges. As a result, major energy-importing nations have experienced the steepest declines in their currencies against the dollar since the onset of the U.S.-Israeli conflict with Iran. Notably, the Indian rupee and other currencies have been particularly affected.