Behind the move sits a tangle of oil, war and interest rates.Fighting between the US and Iran flared up again this week, and that pushed oil to a six week high, with Brent crude trading near $95 a barrel. Higher oil usually stokes inflation fears, and that's a big part of what's propping the dollar up right now. Japan's finance minister, Satsuki Katayama, tried to talk tough on Wednesday, saying officials stand ready to step into the currency market if things get too wild. She wouldn't name a line in the sand, though. Feels like everyone's just waiting to see who blinks first, and that's not a great look for anyone holding yen right now. Meanwhile the European Central Bank meets Thursday, expected to hold rates steady but keep a September hike on the table.
The dollar index,which tracks the greenback against a basket of major currencies,eased slightly to 101.14 on Wednesday,its first dip after four straight days of gains and a level that still sits close to a one week high.
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