The U.S. dollar continued on its sharp upward trajectory on Tuesday, hitting multi-month peaks against the euro, sterling and yen as tensions in West Asia fuelled fears of prolonged global inflation and triggered broad demand for safe-haven assets. Higher energy costs threaten to elevate consumer prices, particularly for economies heavily dependent on oil imports, making policymakers more cautious about easing financial conditions too soon. In late-morning trading, the dollar surged against the euro , which was last down 1.2% at $1.1554. Against the yen, the dollar rose 0.3% to 157.74 yen after earlier climbing to its highest since January 23, when the New York Federal Reserve reportedly conducted rate​checks on the dollar/yen pair. Europe and Japan are more exposed to higher energy costs than the U.S., which is a net energy exporter.

Source: The Telegraph March 03, 2026 16:50 UTC