The dollar index held above 101 on Wednesday, extending its gains for a fourth consecutive session. The currency was supported by higher US Treasury yields and rising oil prices, as the United States carried out strikes on Iranian targets for an 11th straight night. President Donald Trump also played down the prospects of near-term negotiations with Tehran, while Iran-backed Houthi rebels in Yemen continued to disrupt shipping in the Red Sea.
Supply concerns were further heightened by a series of attacks on the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast.
On the economic front, ADP data showed that US private employers added an average of 16,500 jobs per week over the four weeks ending July 4, down from an average weekly gain of 19,250 in the previous four-week period. That marked a fourth consecutive slowdown in hiring.
In monetary policy, markets expect the Federal Reserve to keep interest rates unchanged at next week’s meeting, while pricing in a better than 55% probability of a rate increase in September.