Dollar eases after touching two-month high as markets weigh Fed path and oil

The U.S. dollar gave back some gains after touching its highest level in roughly two months. The dollar index reached 100.66 before easing to around 100.48 as investors weighed the outlook for Federal Reserve interest rates against falling oil prices and diplomatic developments in the Middle East. Persistent inflation concerns have kept the possibility of further U.S. rate increases in focus, supporting the dollar. At the same time, lower crude prices could reduce some inflation pressure, creating a more mixed backdrop for currencies. The Japanese yen and British pound also remained under pressure against the dollar. Investors are watching comments from Federal Reserve officials and upcoming economic data for signals about the timing and scale of any further policy moves.