Dollar keeps climbing as oil, US yields stay high; jobs data looms

The US dollar is soaring to multi-month highs, bolstered by elevated oil prices and soaring US Treasury yields. On Tuesday, the greenback tested several-month highs against major peers, with the euro slipping to a three-month low and the pound nearing three-month lows. The Swiss franc also weakened, marking its softest point in four months.

Investors and analysts are increasingly anticipating further rate hikes by the US Federal Reserve, driven by high oil prices and robust US economic growth. While the dollar's strength is being bolstered by these factors, European central bankers have pushed back against aggressive rate hike expectations. The upcoming release of US economic data, including personal consumption expenditures price index and non-farm payrolls, will be crucial in determining if the Fed will proceed with further hikes.