Dollar stands tall as Gulf tensions fuel oil price surge, Fed hike bets

The US dollar strengthened against the yen (162.41) on Middle East tensions that pushed Brent crude up to $79.28 a barrel, a two-week high. The June FOMC minutes showed a hawkish tilt, with markets pricing in about an 87% probability of a Fed rate hike this year, lifting US 10-year and 30-year Treasury yields to seven-week highs. The yen remained near its 40-year trough around 162.71 against the dollar, with possible stealth Japanese intervention suspected from prior week action.